- Americans are generally living longer nowadays.
- However, elderly individuals spend less time in good health. Consequently, their "health span" is decreasing.
- Chronic medical conditions are generally associated with higher healthcare expenses.
First, the positive aspect: Americans are living longer than they used to.
For the unpleasant part now: Senior citizens in America are experiencing longer periods of ill health. This situation frequently leads to adverse economic outcomes, according to both healthcare and finance professionals.
Since 1960, the typical lifespan in the U.S. has extended to 77.5 from roughly 70 years old as stated by the Centers for Disease Control and Prevention.
However, "health spans" are concurrently decreasing.
The duration of time seniors remain in excellent health constitutes their healthspan, according to Susan Roberts, who serves as a professor of medicine and epidemiology and holds the position of senior associate dean for foundational research at Dartmouth College.
Currently, an individual typically endures around 10 years battling long-term conditions such as diabetes, cancer, arthritis, heart disease, dementia, cataracts, or osteoporosis — this period is approximately twice what it was in the 1960s, according to Roberts.
Consequently, there is a growing discrepancy between how long people live and how healthy they remain, she explained.
This is due to improvements in medical care that have enhanced our ability to keep ill individuals alive, even if they're not always curing their conditions, according to Roberts. Additionally, obesity—a key contributor to numerous long-term health issues—is becoming increasingly common, she noted. affects According to CDC data published in 2021, 42% of adults in the U.S. were affected.
How health impacts wealth
The idea of a health span is becoming "ever more crucial" for a family’s budget, according to Stacy Francis, a certified financial planner from New York and a member of Pawonation.com's Advisor Council .
Adults are increasingly finding themselves "leading lives where they aren’t at their peak performance," noted Francis, who serves as both the president and CEO of Francis Financial. This trend leads to considerable costs.
About 90% of the nation's $4.5 trillion in annual health care costs are for people with chronic diseases and mental health conditions, according to the CDC.
Roberts mentioned that medical expenses become "increasingly burdensome" for individuals who suffer from a long-term illness.
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A typical 65-year-old who retires this year will spend about $165,000 In out-of-pocket costs for healthcare and medical expenses during retirement, there has been an increase of 5% compared to 2023, as reported by Fidelity Investments.
Out-of-pocket treatment costs and early retirements owing to bad health are two big ways Experts stated that chronic illnesses have a financial impact on families.
Early retirement might mean claiming Social Security sooner than anticipated — potentially leading to a reduced monthly benefit, according to Carolyn McClanathan, who is both a physician and a CFP located in Jacksonville, Florida.
"The state of an individual’s health has a direct effect on their financial well-being, particularly so as they grow older," says Susan Silberman, who serves as the senior director for research and evaluation at the National Council on Aging. said in a 2022 briefing.
Certainly, this doesn't mean that healthy individuals never face considerable healthcare costs.
They might end up paying more overall in the long run compared to an unhealthy person if they require extensive long-term care, which tends to get more expensive as one ages, noted McClanahan, who founded Life Planning Partners and is also part of a membership group. Pawonation.com's Advisor Council .
Moreover, individuals who maintain good health enjoy more energetic phases during their later years, which allows them to embark on travels and indulge in enjoyable activities, as she pointed out.
Invest in yourself
"Once you reach your 40s and 50s, there’s no turning back," McClanahan stated.
If individuals fail to prioritize their well-being by this stage of life, they grow increasingly vulnerable to long-term ailments such as diabetes and hypertension, potentially resulting in acute problems including strokes and heart attacks, she explained.
Consider buying nutritious food, joining gyms, or taking exercise classes as investments in yourself, advised Francis. Give priority to these expenses for your well-being. If you find them costly, attempt to reduce spending on things that do not enhance your healthspan, she suggested.
Francis compared it to putting money into his 401(k) as an investment.
She mentioned that those additional funds would extend your lifespan and ultimately be worth it.
According to Roberts, over fifty percent of individuals can overturn a diabetes diagnosis by shedding ten percent of their body weight within the initial seven years following the diagnosis.
Roberts mentioned that the "greatest misfortune" of long-term diseases is their preventability. She stated that making minor adjustments in one’s diet—such as cutting out sodas and fruit juices high in sugar, and opting for healthier options like an apple for snacking—can lead to a "significant change."
It’s really not too challenging to develop a liking for nutritious food," Roberts stated. "Give it a few weeks of practice and be kind to yourself during the process.
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