Financial planning for the year ahead could extend your life, according to a new study.
It can be difficult to save up during a time when inflation has hit an all-time high and prior research has found that many households have had difficulty preparing financially for the future.
There have been a few studies in the past exploring if proactive financial planning is linked with a reduced risk of death. So, is this really the case?
For this study, researchers looked at data from over 11,000 seniors from the United States and the United Kingdom over the course of 22 years.
Participants responded to surveys that investigated their health, projected lifespan, and the extent to which they considered the future of their financial choices.
The results showed those who consistently planned with their finances had a reduced likelihood of dying during the observed period.
This correlation between the two remained consistent even when adjusting for potential influences such as demographics, income, and self-perceived life expectancy — which in turn could influence financial strategies.
Those with a more forward-looking approach to finances reported better health overall.
The connection between finances and a longer life expectancy was the strongest among those who had less of an income.
Researchers believe this suggests that long-term planning might be especially beneficial for people who do not have a financial safety net to fall back on.
However, the team of researchers also noted that these findings do not confirm a cause-effect relationship and more research is needed.
Nonetheless, researchers believe this study could help inform efforts to reduce health disparities among older people.
“Our study suggests that a lack of financial planning is not only bad for your wallet but also for your health and longevity,” said study co-author, Professor Joe Gladstone from the University of Colorado, in a media release.
“By encouraging people to think more about their future needs and goals, we may be able to improve their well-being and reduce health disparities.”
