Baby Boomers Would Choose Better Health Over More Money

There’s a phrase financial advisors hate to hear (although we hear it too often) – “I wish I had…”

In the realm of money, we work to help people and families avoid this phrase. After all, that’s the purpose of a financial plan. It looks ahead, anticipates your needs, and works ahead to be prepared. Especially when it comes to retirement, we never want people to reach their golden years wishing they had done more to prepare.

That’s why this new study highlighted by GrowWellthy caught our attention.

The Other Asset You Need in Retirement

Our approach to financial planning acknowledges a very important detail – money isn’t the goal. It’s a resource that helps you enjoy the people, places, and activities you love with more freedom. Without enough money, retirement can be much more stressful.

But there’s another asset that Boomers need in retirement: health. In fact, your health operates much like your finances. Here’s a few ways:

1. It’s much harder to start investing in your health at the last second.
2. If you steadily invest in your health today, you’re less likely to need drastic action down the road.
3. A base line of “enough” health helps you recover faster from emergencies, just like a financial emergency fund.

While many Boomers have worked with a financial professional to create a financial plan for retirement, the sad reality is that many arrive at their golden years with “underfunded” health.

The #1 Resource Boomers Wish They Had More of in Retirement

A recent study by Annuity.com reported that if Baby Boomers could go back and make different choices, many would prioritize better health over more money in their retirement planning. Even if they have enough money to live comfortably, money without health does not add up to an enjoyable retirement. In the words of the ancient Greek physician Herophilus, “When health is absent… wealth becomes useless.” Lack of health leads to problems like:

1. Unexpected early retirement & shortened earning years
2. Large emergency medical expenses that drain savings
3. Lack of physical ability to enjoy the places and activities retirees enjoy most

We also see this in another survey conducted by the Nationwide Retirement Institute (Health and Wealth: A Strong Connection, 2019). It found that 76% of Baby Boomers would prioritize their health over a larger retirement fund. This is a significant shift from previous generations who saw money as the most important factor in retirement planning.

Health Plus Wealth

One reason for this shift in focus is the rising cost of healthcare. As Baby Boomers age, they are more likely to experience health problems that require expensive medical treatments or years of long term care. Having good health could avoid some of those expenses and lead to more financial security.

Another reason, and maybe more importantly, is research indicating that good health can lead to a longer and more fulfilling retirement. According to a study by the National Bureau of Economic Research (The Determinants of Happiness, 2017), retirees who prioritize their health have a higher quality of life and are more likely to engage in activities they enjoy.

In conclusion, Baby Boomers recognize the importance of good health in retirement planning. While money is still important, it is clear that health should not be overlooked. Prioritizing good health can lead to a longer and more fulfilling retirement, as well as financial security.

One Step You Can Take For Your Health

You likely believe that expertise matters. In matters of your financial plan, we are happy to help you create a plan that fits your life and your goals. When it comes to the challenges of health and wellness, we have purchased access to a digital event series from GrowWellthy called “Wellth Webinars”. These events are aimed at helping you, our clients, grasp the important relationship between your health and your wealth – and better yet, presenter Stevyn Guinnip will give you practical ideas you can take to begin steadily investing in your health and happiness right away.

If you’d like more info on how to access these events, we invite you to contact us! These are for our clients only at this time.