FINANCE
WELL-BEING THE HEALTH BENEFITS OF FINANCIAL SECURITY WRITERS: THOMAS FROSS AND ROBERT FROSS
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inancial stability yields obvious benefits to your lifestyle and state of mind, but it can be good for your health, as well. A lack of financial security can cause depression or anxiety, exacerbate health problems, and reduce your ability to care for yourself later in life. Everyone has different financial needs, but the basic building blocks to financial stability are savings, a realistic retirement plan, adequate insurance, and a sound long-term financial strategy. A lack of financial security may cause serious stress, and research has confirmed that financial strain can have detrimental effects on health. A 2004 study of arthritis patients found that financial stress increased disease symptoms among participants and led to worse health outcomes over time. Financial worries can also cause anxiety, which may lead to unhealthy coping behaviors that also affect health. According to the results of a 2005 study, smokers under financial strain were less likely to quit smoking and ex-smokers were more likely to suffer a relapse. Well-managed finances can aid in giving you better health outcomes by increasing your ability to seek medical care. Avoiding medical treatment because of inadequate health coverage delays care and may lead to more serious health issues. With the changing landscape of medical insurance in
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America, one of the best protective measures you can take to safeguard your physical well-being is to take care of your financial health. Developing a sound financial plan – one that accounts for your long-term medical needs and the increasing medical costs associated with end-of-life care – will help ensure that you, and your assets, are well protected. Early planning may also increase your options for paying for care. An increasing number of Americans are choosing to purchase long-term care insurance in their 40s and 50s when premiums may be lower; other individuals are choosing to self-insure or rely on supplemental insurance. An experienced financial professional can help you explore your options and ensure that health care provisions are included in your financial planning. The better you care for your finances throughout your working life, the better you can care for yourself in retirement. Many retirees are overwhelmed by the cost of prescription medication, medical devices, and the fees associated with assisted living communities and other retirement homes. If you are worried that rising health care costs might put a strain on your family’s resources, you are not alone. A 2011 Retirement Confidence Survey by the Employee Benefits Research Institute found that 50 percent of respondents were “not too” or “not at all” confident about
being able to pay for medical expenses in retirement. A solid financial plan that covers all your bases can help you better weather the cost of health care in your golden years and help ensure that the quality of your life, health, and retirement are not diminished because of higher expenses. Good financial health can provide a number of material benefits that also improve your mental and physical health. Managing your finances so that you can go on vacation without worrying about the credit card bills makes you better able to enjoy the time you spend traveling. Again, the research is clear: vacations and recreational activities have positive effects on health and wellbeing. Financial security means that you can actually relax and reap the mental health benefits of taking time off. What can you do to help establish your financial health? A good place to start is to make sure you have enough emergency savings to get through a rough patch. Whether you experience a gap in employment, an injury, or an unexpected home repair, having the money available to cover the expense without going into debt will assist in putting you in a better place to make a speedy recovery. While every individual has unique financial needs and circumstances, there are some steps you can take to