A strong correlation exists between health, wealth and retirement satisfaction, according to a report from the Employee Benefit Research Institute, published Thursday.
The analysis, based on data from the 2020 Health and Retirement Study, focuses on retired individuals aged 55 to 80. The data show that, as household wealth rises, more people rate their health as excellent or very good.
“When comparing individuals from the same wealth group, those in better health were more likely to be very satisfied with their retirement compared with those in poor health. Among people with the same health ratings, those with higher household assets were also more likely to be very satisfied with their retirement,” according to EBRI. “This shows that both good health and wealth have a positive impact on retirement satisfaction.”
The report also revealed that wealthier respondents were more likely to self-report good health. For example, 56% percent of individuals in households with $500,000 or more in assets self-reported as being in excellent to very good health, compared with only 25% of respondents in households with less than $25,000 in assets.
A willingness to take risks appears to affect retirement satisfactions for some, according to the authors.
“The higher concentration of better health ratings among individuals with a higher risk appetite could be attributed to their perception of physical activity. It is possible that those with lower risk appetites see physical activity as something that can harm them, while those with bigger risk appetites view it as an enjoyable challenge,” EBRI said.
According to the report, employers should impart on their workers the importance of saving wisely for retirement and should emphasize the connection among health, wealth and retirement satisfaction.
