(Article for the Jakarta Globe – 2 July 2012 issue)
MONEY WISE
HOW LIFESTYLE CAN AFFECT YOUR FINANCIAL HEALTH‘Early to bed, early to rise, makes a man healthy, wealthy and wise’. So thesaying goes. I am certainly early to bed and early to rise if only, like so manyothers, to beat the Jakarta traffic. I suspect this is not sufficient on its own tomake us healthy, wealthy and wise, but there is definitely a connection
between lifestyle and the three desirable qualities.
But first let’s look at some of the issues we face.
The rising cost of healthcare
It has been estimated that a 65-year old couple in the US would need to spend$200,000 on healthcare during retirement based on the man living to 80 and
the woman to 85. Agreed, medical care in the US is very expensive but costs
are escalating everywhere. Medical insurance of course is highly advisable andit can prevent major financial shocks should a serious illness or accident occur.
But as we get older, the cost of insurance escalates rapidly to a point where it
is no longer affordable. Perhaps you are fortunate and come from a European
country which will take care of you free of charge should you return there.
Unfortunately such generous welfare systems are partly responsible for thesorry plight of many European economies. As a result we are likely to see a
reduction in those benefits.
Poor lifestyle? – You may be shown the door
When Gordon Brown was British Prime Minister he raised a few eyebrowswhen in a New Year message to healthcare staff he indicated that people may
have to fulfil ‘new responsibilities’ in order to establish their right to care.
While no-one is likely to be refused treatment in an emergency, patients whosmoke, drink heavily or become seriously overweight are increasingly being
refused places on waiting lists for elective treatments and even non-urgent
heart surgery. As anywhere in the world, if you are wealthy you can jump thequeues and opt for private treatment, but at a cost which may significantly
reduce your wealth.

The benefits of a healthy lifestyle
A growing body of evidence points to the fact that moderate exercise for atleast 30 minutes a day for most days of the week can substantially reduce therisk of developing some of the more costly and debilitating conditions including
heart disease, cancer, stroke and even dementia. If you can stave off dementia
and live independently in old age you can avoid the huge expense of long termcare. But there are also immediate cost benefits. Being in good health means
you will pay the lowest premiums for life, critical illness or income protection
insurance. Some health insurers have been slashing premiums for those who
allow their diet and exercise regimes to be monitored. Others are offering
discounted membership of gyms.
Other benefits of a healthy lifestyle? Less time off work, greater alertness anda better chance of advancing your career with the accompanying financial
benefits.
How smoking can burn a hole in your wallet
How many times have you heard comments such as ‘my father smoked like achimney and lived to his nineties’? How many great world leaders havesurvived to old age even though they were smokers? Indeed, such cases occur,
but for each such case there will dozens who met an early death or suffered an
expensive illness. Another factor is that in the past our lungs were notbombarded with the high levels of pollution that surround us today,particularly in Jakarta! If you are a smoker and you apply for life or critical
illness insurance you could find the premium is at least 50% higher than thatapplied to non-smokers. So not only is part of your hard-earned income goingup in smoke, you will have to dig even deeper into your pocket if you want toinsure yourself.
Is it possible to change lifestyle?
It is never easy to break away from lifetime habits. But if you feel your lifestyleis affecting your health and is threatening to hurt your pocket then it could be
worth making a supreme effort to change things. Perhaps downtown Jakarta
does not present an obvious environment for healthy exercise but you don’t
have to go too far out of town to enjoy walking, running or biking in thesurrounding hills. Golf enthusiasts are spoiled for choice. Many urbanites now
live in apartment complexes; most offer facilities such as tennis courts and agym. Don’t let age be an excuse; there is no age limit to fitness.
Is there a downside to all this healthy living?
The benefits in terms of quality of life and the likely financial rewards areindisputable. Longevity can however raise the concern of whether sufficient
provision has been made to generate a large enough income in retirement.
This is an issue all retirees have to face, but if you live to 90 and are still in good
health you want to make sure you still have enough money to go out partying!
This is perhaps where becoming wealthy is not enough on its own; you also
have to be wise enough to tuck a large portion of that wealth away for yourlater years.
Colin Bloodworth

PPi Indonesia