The average life expectancy in the United States is increasing, but the years spent in good health, often referred to as the “health span,” are shrinking. This widening gap between living longer and living well poses significant financial challenges, particularly as healthcare costs soar in the face of chronic conditions. As medical advances continue to prolong life, experts warn that the financial burden on individuals and families could become overwhelming unless proactive steps are taken.
Longer Lives, Poorer Health
Americans are now living longer than ever before. According to the Centers for Disease Control and Prevention (CDC), the average lifespan has risen from approximately 70 years in 1960 to 77.5 years today. However, this positive trend is being offset by an alarming decrease in the health span — the number of years people spend in relatively good health before chronic illnesses take hold.
Susan Roberts, a professor of medicine and epidemiology at Dartmouth College, explains that while life spans have increased, health spans have not kept pace. In fact, the average person now spends roughly 10 years battling chronic ailments such as diabetes, cancer, arthritis, and cardiovascular disease — a figure that has doubled since the 1960s.
“Medicine has made great strides in keeping sick people alive,” says Roberts. “But we haven’t necessarily become better at treating chronic diseases, and this is driving a widening gap between life spans and health spans.”
The Growing Burden of Chronic Disease
Chronic illnesses like obesity, which is a precursor to many other health conditions, are contributing to this troubling trend. The CDC reports that 42% of U.S. adults are obese, up from previous decades. Obesity is a major risk factor for diseases like diabetes and cardiovascular issues, both of which are becoming more prevalent in older populations.
This increase in chronic conditions has serious financial implications. According to the CDC, 90% of the country’s $4.5 trillion in annual healthcare costs are related to chronic diseases and mental health conditions. As medical conditions become more complex, healthcare expenses continue to rise — particularly for older adults.
How Health Affects Your Wealth
Stacy Francis, a certified financial planner and member of CNBC’s Advisor Council, emphasizes that the growing importance of the health span is reshaping the financial landscape for many households. With people living longer but less healthy lives, medical expenses are increasing significantly, often outstripping the financial resources of retirees.
“Adults are spending more time living a life where they’re not in their best state,” Francis explains. “And that results in significant expenses, especially for those who have chronic conditions.”
Indeed, the cost of healthcare in retirement is rising rapidly. Fidelity Investments estimates that the average 65-year-old retiring in 2024 will spend about $165,000 on out-of-pocket medical expenses throughout retirement — a 5% increase from 2023. These costs include treatments for chronic conditions and long-term care, both of which can strain a household’s finances.
Early Retirement and Social Security Challenges
Chronic illnesses not only increase healthcare costs but can also force people into early retirement, which further exacerbates financial strain. Carolyn McClanahan, a physician and financial planner, explains that many people with chronic conditions may need to claim Social Security benefits earlier than planned, which can result in a lower monthly payout.
“A person’s health directly impacts their wealth — and this connection becomes even more acute as people age,” McClanahan says. Early retirement may also mean drawing on savings and pensions sooner than anticipated, which can deplete financial reserves meant for the later years of life.
Preventative Measures: An Investment in Longevity
Experts agree that the best way to mitigate the financial impact of a shrinking health span is to invest in preventative measures. While healthcare costs for chronic conditions are inevitable, the onset of these ailments can often be delayed or even prevented with lifestyle changes.
“When you’re in your 40s and 50s, it’s the point of no return,” McClanahan says. “If you don’t start tending to your health by this age, you become more susceptible to chronic diseases.”
Financial advisor Stacy Francis advises individuals to treat investments in health — such as nutritious food, exercise classes, or gym memberships — as part of their long-term financial strategy. “Think of those extra dollars as an investment, just like you would with a 401(k),” she says. “Those investments will add years to your life, and you’ll make up for it in the long run.”
Reversing Chronic Conditions and Improving Health Span
The good news is that many chronic conditions are preventable, and in some cases, even reversible. For example, more than half of people with diabetes can reverse their diagnosis by losing 10% of their body weight within the first seven years of diagnosis, according to Roberts. Simple dietary changes, such as eliminating sugary drinks and incorporating healthy snacks, can also have a profound impact on overall health.
“The biggest tragedy of chronic ailments is that they’re preventable,” Roberts says. “Learning to enjoy healthy foods is not difficult — practice it for a few weeks, and you’ll see a dramatic difference.”
Conclusion: Balancing Longevity with Financial Preparedness
As life spans continue to rise, the shrinking health span will present financial challenges for individuals and families alike. The key, experts say, is to plan ahead by investing in both your physical and financial health. By making smart lifestyle choices and preparing for potential healthcare costs, you can ensure that your golden years are spent not just living longer, but living well.
