Lifespan increases, but the ‘health span’ decreases

First, the good news: Americans are living longer than they used to.

Now the bad news: Older Americans spend more years in poor health. That dynamic is often accompanied by negative financial consequences, medical and financial experts say.

Since 1960, the average American lifespan has increased to 77.5 of approx 70 years oldaccording to the Centers for Disease Control and Prevention.

But at the same time the ‘health span’ is shrinking.

A health span is the number of years that older adults spend in fundamentally good health, says Susan Roberts, professor of medicine and epidemiology and senior associate dean for basic research at Dartmouth College.

Today, the average person spends about a decade with chronic conditions such as diabetes, cancer, arthritis, cardiovascular disease, dementia, cataracts or osteoporosis — about double the duration in the 1960s, Roberts said.

As a result, there is a “wider gap” between a person’s life and health status, she said.

This is because medicine has gotten better at keeping sick people alive, but not necessarily treating them, Roberts said. Obesity, an underlying cause of many chronic diseases, is also becoming more common, she said. Obesity influences 42% of US adults, according to CDC data released in 2021.

The concept of a health span is “increasingly important” to a household’s finances, says Stacy Francis, a certified financial planner based in New York and a member of CNBC’s Advisory Board.

Adults spend more time “living a life where they are not at their best,” says Francis, president and CEO of Francis Financial. “And it results in significant costs.”

About 90% of the $4.5 trillion in annual health care costs go to people with chronic diseases and mental health problems. according to to the CDC.

Medical costs get “worse and worse” once people have a chronic condition, Roberts said.

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The average 65-year-old who retires this year will spending about $165,000 in out-of-pocket health care and post-retirement medical costs, up 5% from 2023, according to Fidelity Investments.

The out-of-pocket treatment costs and early retirements due to ill health are two major ways Chronic conditions have financial consequences for households, experts say.

Early retirement may mean claiming Social Security earlier than expected — perhaps resulting in a lower monthly benefit, says Carolyn McClanahan, a physician and CFP based in Jacksonville, Florida.

“A person’s health has a direct impact on his or her wealth — and this connection becomes even more acute as people age,” says Susan Silberman, senior director of research and evaluation at the National Council on Aging. said in a 2022 briefing.

Of course, this does not mean that healthy people avoid significant medical costs.

They may end up paying more in the long run than an unhealthy individual if, for example, they need long-term care, which can be costly and more likely with age, says McClanahan, the founder of Life Planning Partners and a member of CNBC’s advisor. Council.

Additionally, healthy people experience more “go-go” years, meaning they can travel and spend money on fun things, she said.

“Once you’re in your 40s and 50s, there’s no going back,” McClanahan said.

If adults don’t take care of their health at this age, they become more susceptible to chronic diseases such as diabetes and high blood pressure, which can lead to sudden problems such as strokes and heart attacks, she said.

Consider purchasing healthy foods, gym memberships or exercise classes as an investment in yourself, Francis said. Prioritize spending on your health and, if it feels like too much money, try cutting back on expenses that “don’t prolong your health,” she said.

“I look at that as an investment that I put into my 401(k),” Francis said.

“Those extra dollars … will add years to your life and you will make up for it,” she said.

More than half of people can reverse a diabetes diagnosis by losing 10% of their weight within the first seven years of diagnosis, Roberts said.

The “greatest tragedy” of chronic conditions is that “they are preventable,” Roberts said. A few dietary adjustments — eliminating sugary drinks like soda and juice, and eating small, healthy snacks like an apple — can make a “dramatic difference,” she said.

“It’s actually not that hard to learn to like healthy foods,” says Roberts. “Practice it for a few weeks and be patient with yourself.”