The Health and Wealth Connection

Created in Collaboration with Kiplinger.

Retirement is a unique vision that everyone imagines and achieves in their own way. Regardless of your goals, working to maintain both financial and physical wellbeing can help you get the most from the journey ahead. That’s because research shows that health and wealth often go hand in hand.

Researchers have found that people who save more tend to take better care of their health.¹ They speculate that those who value and look forward to their future save regularly and make healthier choices in the present to improve their health tomorrow. For example, they may be more likely to stick to treatment plans for correctable conditions such as high blood pressure.

When planning for retirement, consider this intersection of health and wealth, and assess factors like these to improve retirement readiness.

Longer Life Expectancy

Today, a currently healthy 65-year-old man can expect to live to 87 (and a woman to 89).² Compared to 1940, that’s 17 years longer for men, and 20 years longer for women.

This increased longevity requires enough savings to last what could be a 30-year (or longer) retirement. It also may affect the way retirees approach key decisions, such as when to begin drawing Social Security, how to allocate assets, and what kind of life insurance and long-term care coverage may be best.

Manageable Health Conditions

Practicing healthy behaviors can also help prevent some medical expenses in retirement. Consider this example: A 50-year-old with Type II diabetes may save $17,000 annually in healthcare expenses during retirement by working now to keep that disease under control.³

Spending on Leisure Activities

Those who occasionally splurge feel better about retirement than their more frugal peers. Researchers have found that spending on leisure activities– including dining out, traveling, entertainment, and hobbies– can predict retirees’ general level of satisfaction.⁴

Study authors believe that these types of activities keep retirees mentally healthy and engaged in the world around them.

As retirement comes into view, it’s important to focus on the interplay of health and wealth. Talk with your financial professional to help ensure that your fiscal health supports your physical health and wellbeing– and vice versa– in the future.