5 Ways Today’s Health Habits Could Affect Your Future Retirement Expenses
Written by
Kerra Bolton
Edited by
Cory Dudak
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Your current health habits are one of the most commonly overlooked ways to increase your retirement savings.
An estimated 14 million Americans have medical debt of $1,000 or more, per KFF, which could eat into their retirement savings. Medical expenses tend to increase as people age.
“From medical procedures that try to reverse prior damage to frequent doctor visits because lifestyle choices have caught up with our bodies, savings and time are being eaten up by health care,” said Jessi Chadd, chief wealth officer at Aspyre Wealth Partners.
“It can prevent us from doing the things we had looked forward to in retirement,” Chadd said. “We should think about our health the way we think about our 401(k)s by asking, ‘what contributions can I make today to set myself up to do well in retirement.”
Here are five ways today’s health habits could affect your future retirement expenses.
Watch Your Mouth
According to the American Dental Association, 13% of the U.S. population reported cost barriers to dental care, compared to 4-5% for other healthcare services.
Per Humana, without insurance, dental care services — from routine to restorative — can range from $90 to $100 per visit or as much as $1,800 for a root canal, depending on where you live and the services you need.
“The reality is our teeth just wear out over time and dental insurance plans don’t cover costs much beyond cleanings,” Chadd said.
According to NewMouth, standard dental insurance policies cover about 80% of minor restorative dental procedures such as cavity fillings, emergency X-rays, and tooth extractions.
You can prioritize preventative dental care now to help avoid more expensive treatments in the future. Many dental offices offer payment plans or discounts for paying in cash. Finally, you can get a dental savings plan as an alternative to traditional insurance, which sometimes offers discounts on certain procedures.
Stay Agile
It’s important to maintain your flexibility, strength, and mobility for everyday tasks like carrying groceries or lifting suitcases into the overhead bins on an airplane.
“My husband is a personal trainer, and a lot of his clients are retirees looking to maintain their musculoskeletal systems so they can stay on their feet and out of bed,” Chadd said. “Starting these practices sooner and paying attention to muscle and bone health in our pre-retirement years could yield nice dividends as we age in retirement.”
Prioritize Movement
According to the latest report by the American Heart Association, nearly half (48%) of all Americans over the age of 20 suffer from a form of cardiovascular disease, including coronary heart disease, heart failure, stroke, or hypertension.
In addition, fewer than one-fourth (24.2%) of U.S. adults follow the national recommendations for physical activity, as the Centers for Disease Control and Prevention (CDC) outlined, which includes about 2.5 hours of moderate-intensity exercise each week.
“Often heart health and similar issues are genetic conditions, but our behavioral choices can help slow down the genetic impact,” Chadd said. “I see people who did not prioritize movement and healthy eating in their 40s and 50s really struggle in their retirement years.”
Manage Chronic Diseases
According to the CDC, chronic health issues like diabetes and obesity contribute to 90% of the nation’s $4.5 trillion in annual healthcare costs.
You can mitigate your health and financial risks by quitting smoking and lowering your alcohol intake. Chadd recommended that people with chronic or high risk for critical health conditions should discuss their health needs with their financial advisors.
“I have clients with access to a Health Savings Account while they are still working, so we plan to have them maximize their contributions to that account each year,” Chadd said. “They forgo using those dollars today to save them for retirement by creating a health savings mechanism for their later years.”
Plan For Long-Term Health Care
Long-term care insurance can help you protect your assets and provide more choices about where — and how — you or your partner receive care when you need it.
In addition, plans like Flexible Savings Accounts (FSAs) and Health Savings Accounts (HSAs) can offer significant tax advantages and must be used solely for health care. HSA plans are only available if you have a high deductible health plan, said Jordan Teel, CEO of Everly, a life insurance company.
“You may want to consider purchasing an annuity with features that can accelerate payments in case of major medical events,” Teel said.
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