Financial well-being of older Australians with multiple health conditions

ObjectiveGiven recent rises in out-of-pocket health expenses, we examined the financial well-being of older Australians with multiple health conditions and disabilities. MethodsThe 2014 General Social Survey was used to measure the: (i) current financial position; (ii) propensity to experience financial difficulties; and (iii) types of behaviours older people with multiple health conditions engage in to improve financial resilience. ResultsCompared to older Australians with no health conditions, respondents with multiple health conditions had lower incomes and assets and a higher propensity to hold consumer debt (once controls were included). They were at a higher risk of cash flow difficulties, dissaving to meet day-to-day living expenses and exclusion from financial providers. However, the majority of people with multiple health conditions engaged in financially resilient behaviours. ConclusionMany older Australians with multiple health conditions were in a financially precarious situation with implications for the ability to afford ongoing increases in out-of-pocket health-care costs. Policy Impact: Many older Australians with multiple health conditions are in a financially precarious situation. Although they engage in financially resilient behaviours, their health conditions place constraints on re-entry to the labour market to improve financial wellbeing. The increased financial burden for people with multiple and/or long-term health conditions emphasises the benefits of preventative health interventions along the lifespan for the benefit of older Australians.