Aging with Dignity: Why Does the Right Insurance Make All the Difference in Retirement?

Ensure your financial peace of mind in retirement with the right insurance. Learn about the solutions we offer to protect your health and your future. Because at EXS, we care about protecting what matters most. And aging with a good quality of life is important.

As is the case in most developed countries, the age structure of the Portuguese population is becoming increasingly inverted, which raises numerous problems related to, for example, the long-term sustainability of social security.

Improved living conditions and the end of the dictatorship in Portugal ultimately led to longer, healthier lives—a trend that, over the past two decades, has been offset by a rise in the cost of living and greater job insecurity, which is causing young people to postpone having children and to have smaller families. Although there has been a slight increase in the birth rate in recent years, it is not enough to tip the scales.

Consequence: Fewer and fewer children are being born in Portugal to help ensure a normal generational replacement and the necessary intergenerational solidarity that sustains Social Security and retirement pensions.

The figures from INE (National Institute of Statistics) This is confirmed by the data. By the end of 2024, the aging index—an indicator that compares the population aged 65 and older (the elderly population) with the population aged 0 to 14 (the youth population)— rose to 192.4 older adults for every 100 young people (188.1 in 2023), while the median age of the population rose to 47.3 years (47.1 in 2023).

This resulted in a natural population change of -33,732 people, reflecting a low birth rate that even increasing migration has been unable to offset.

If the situation is concerning—based on the projections—it will be even worse in the future, since it is estimated that, by 2070, the Portuguese population will be around 8.9 million (nearly two million fewer than today), of whom 33.6% will be citizens aged 65 or older.

With the age pyramid reversing and the lack of measures to mitigate this situation, it is only natural that Social Security—and, by extension, pensions—will suffer. Although the Social Security pension fund currently has sufficient liquidity, there is no guarantee that it will continue to do so in the medium term, which will ultimately lead to a serious social crisis.

What are the main financial and health risks in old age?

Minor reforms—or even a lack of reforms—will ultimately exacerbate the already problematic financial risks faced by those entering old age.

Despite the exemption from user fees and copayments for medications, the fact is that, according to Social Security, in 2024, there were about one million pensioners receiving less than 500 euros in pension benefits per month—an amount clearly insufficient to cover rising medical expenses.

We talk about rising medical expenses, but we also have to factor in potential chronic conditions that require ongoing treatment and degenerative diseases that require costly care and treatment.

And that's not even counting expenses for groceries, utilities, housing, and caregivers.

If retirement pensions are already low, things get even more complicated when one spouse dies—resulting in a decrease in monthly income—or when an elderly person becomes dependent on others.

How can the right insurance make a difference?

With more years ahead of them, retirement pensions in urgent need of increases, and ever-rising monthly expenses, it is not easy for older generations to maintain the quality of life they are accustomed to and deserve to continue enjoying.

It's not easy, but it's not impossible either.

By adopting certain savings and insurance investment strategies, we can ensure the essential financial support we’ll need in our later years.

Among the various types of insurance you should purchase during your working life to prepare for retirement is the health insurance comprehensive coverage that helps cover the costs of chronic illnesses, including hospitalization, doctor visits, and medical tests, and, if necessary, home care.

Most insurance companies in Portugal offer coverage with no age limit if the policy is purchased before age 55. If you purchase a policy after age 55, many companies impose an age limit (usually between 60 and 75, depending on the product).

In addition to health insurance, another type of retirement insurance available in Portugal is the Family Protection Life Insurance.

In the event of death, accident, or disability (total or partial), this insurance provides the insured person—up to age 75—and their family members with the necessary financial support in the event of a claim, and can also cover unexpected expenses, such as those resulting from a cancer diagnosis.

Life insurance also includes PPR (Retirement Savings Plan) life insurance, which combines the protection of life insurance with savings accumulation and is designed to provide a supplement to retirement income.

More than just a last-resort solution—whether it’s life insurance or health insurance—it gives the insured time to plan for retirement well in advance. To ensure you get the most comprehensive and competitive solutions, you should seek advice from professionals in the field, such as EXS Seguros.

The Role of EXS in Protecting Older Adults

A specialist in insurance brokerage with over 25 years of experience in the Portuguese market—an achievement that has earned it the TOP 10+ distinction in the Financial Services and Insurance sector and the TOP 5% SME distinction among Portuguese companies— EXS Seguros has a portfolio of more than 25,000 insurance policies, offering Portuguese citizens the best protection at the lowest price, always accompanied by expert advice for every stage of life.

EXS guarantees flexible solutions tailored to the budgets of retirees and pre-retirees, offering them the best medical care for seniors available on the Portuguese market.

The EXS team offers complete transparency and support in managing the insurance policies you've purchased over the years.

The Age of Wisdom

Aging is inevitable, but growing old is a choice. It’s important to make conscious choices that safeguard your finances in light of the healthcare needs that, unfortunately, come with advancing age.

This is where life insurance and health insurance come in—two solutions that, when carefully considered and promptly purchased, provide security, peace of mind, and independence.

Since we’re all heading toward old age, don’t waste any time—contact the EXS team today. We’ll design a protection plan tailored to your current and future needs.

Ensure peace of mind for tomorrow with insurance designed just for you. Contact EXS and discover the best solutions.