The rising cost of healthcare leaves young adults of Generation Z (Gen Z) at risk of neglecting their health and saving for healthcare costs in retirement.
According to the Pew Research Center, Gen Z is described as the group of tweens to young adults in their early twenties born between the late 1990s to 2010. This generation is described in an article by Forbes as the largest in the world right now, and by 2020 will make up one-third of the workforce.
When we think about the workforce today, financial challenges are reported as the number one cause of stressors among employees according to pwc.com. Key findings of the Wellness and Wealth Consumers Insights Report show:
- The majority of Gen Zers cut spending on activities, hobbies, vacations and paying down debt due to healthcare costs.
- Two out of three Gen Zers (63%) have avoided a doctor’s recommendation due to cost.
But it is possible to change these statistics with strategies to make significant progress toward managing healthcare costs today and into the future.
- Take steps to stay healthy. Take care of your health by making positive life changes in relationships, healthy eating and exercise. Even small, incremental changes will deliver results when it comes to your health.
- Make the most of the benefits. During the Open Enrollment season, take advantage of all benefits offered by your employer such as a 401(k) match program, Health Savings Account (HSA) or the FSA that goes with your health plan. A health savings account, commonly referred to as an HSA, is a triple tax-advantaged account that individuals set up in conjunction with a qualifying High Deductible Health Plan.
- Set measurable goals to save. Create a budget and stick to it. Set goals and keep them. Avoid impulse purchases.
- Plan for “fun.” If you don’t set aside funds for something you enjoy — vacation, events, trips, etc. — you put yourself at risk for burnout. Set a goal and begin saving.
- Consult a financial advisor. A good advisor will help you set goals and to plan for the future.
For 2020 health insurance coverage, annual Open Enrollment ends in December. If you have any questions related to your current plan, please contact Insurance Group of the Ozarks at https://www.igotozarks.com.
Source: “Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans.” Health Savings Accounts and Other Tax-Favored Health Plans, Internal Revenue Service (IRS), May 2018