The Growing Influence of Health Risks on Retirement Security
Discussions centered on financial and retirement security have traditionally focused on market and macroeconomic risks, including asset-price volatility, inflation, taxes, and recessions. While these factors are undeniably important, they represent only part of the risk landscape that individuals and their families face today. Population-level health data show that major health events and chronic conditions are common, persistent — and costly. A majority of older adults live with at least one chronic illness, while cancer and cardiovascular diseases remain widespread, and virtually everyone experiences at least some degree of cognitive decline later in life. Unlike market shocks that produce one-time disruptions, health events often persist over many years, creating ongoing and often escalating financial risks over time.
Against this backdrop, it is not surprising that consumers view health-related events and costs as central threats to their long-term financial and retirement security. Across multiple consumer surveys, adults consistently express concerns about the risks that health events and long-term care needs pose to their financial wellbeing, frequently ranking them ahead of worries about a bear market, economic downturn, or inflation.