Knowledge Snapshot
- Pew Research Center: Only about 26 percent of U.S. adults feel extremely or very confident that their income and assets will last throughout retirement.
- Fidelity Investments: Its July 2026 Retiree Health Care Cost Estimate projects that a 65-year-old retiring in 2026 may spend an average of $185,500 on healthcare and medical expenses throughout retirement.
- American Journal of Lifestyle Medicine: A healthy lifestyle can support more consistent employment, stronger financial resources, and better retirement outcomes.
- Expert perspective: Registered dietitian Jennifer Scherer and financial planning expert Jeff Smith connect physical fitness, nutrition, and retirement preparation through their Fitness & Finance Radio podcast.
Quick Answer: Why Is Health a Financial Asset?
Your health can influence how long you work, how much you spend on medical care, whether you remain independent, and how much retirement income you need.
Good health does not guarantee low healthcare costs or prevent every illness. However, regular movement, nutritious eating, preventive care, and strong social connections may help preserve your earning power and reduce the risk that medical expenses will overwhelm your retirement savings.
The practical lesson is straightforward: retirement planning should include both a financial plan and a health plan.
What the Surveys and Research Tell Us
Retirement confidence remains limited
The Pew Research Center, a nonpartisan research institution, surveyed 8,750 U.S. adults from September 2 to 8, 2025. About four in ten respondents said they either lacked confidence that their income and assets would last throughout retirement or did not expect to retire at all. Only about 26 percent were extremely or very confident.
The same Pew research found that health concerns were the leading worry among adults under 65 thinking about later life. Financial concerns ranked second.
That combination matters. People are not viewing health and money as separate issues. They understand that declining health can affect both their quality of life and their financial independence.
Read the Pew Research Center report on Americans’ finances and aging.
Healthcare can become one of retirement’s largest expenses
Fidelity Investments, a financial services company that has published its annual estimate since 2002, reported in July 2026 that a 65-year-old retiring in 2026 could expect to spend an average of $185,500 on healthcare and medical expenses throughout retirement.
The estimate assumes Original Medicare Parts A and B and Medicare Part D. It includes premiums, deductibles, coinsurance, copayments, and certain prescription expenses. It does not include long-term care, most dental services, over-the-counter medications, or every expense excluded by Original Medicare.
That distinction is important. Medicare is essential coverage, but it is not the same as free healthcare.
Fidelity’s estimate is a planning benchmark, not a personal forecast. Actual costs may vary based on health status, location, longevity, insurance choices, and whether an employer provides retiree coverage.
Review the Fidelity Retiree Health Care Cost Estimate.
Health and wealth reinforce each other
A 2021 article in the American Journal of Lifestyle Medicine, “Health and Wealth: The Importance for Lifestyle Medicine,” examined the relationship between health, employment, financial resources, and retirement.
The authors concluded that preserving good health during working years is associated with a more consistent employment record, greater financial resources, and a lower risk of disease. They also identified financial resources, health, and social networks as important drivers of retirement outcomes.
This is not an argument for blaming people who become ill. Health is shaped by genetics, environment, access to care, income, work conditions, and many other factors. Instead, the research supports a broader planning principle: where you have reasonable control, health habits can be part of your long-term financial strategy.
Read the American Journal of Lifestyle Medicine article through PubMed Central.
Editorial Perspective: Train for Retirement
Many people train for a job, a sport, or a special event. Fewer people train for retirement.
That may be a mistake. Retirement often requires walking more, carrying groceries, traveling, managing a home, helping family members, and staying independent without the structure of a workplace.
A useful fitness plan should focus on function rather than appearance:
- Aerobic capacity: Walking, swimming, cycling, or other activities that support heart and lung health
- Strength: Exercises that help preserve muscle and make everyday tasks easier
- Balance: Activities that reduce fall risk and support confidence
- Mobility: Stretching and movement that help maintain range of motion
- Consistency: A realistic routine you can continue through different life stages
Before changing your exercise routine, discuss your goals and limitations with a qualified healthcare professional, particularly if you have a chronic condition, injury, or long period of inactivity.
Jennifer Scherer, a registered dietitian and co-founder of Fitness & Finance Radio, brings nutrition and fitness expertise to the health and wealth conversation. Her work with Fredericksburg Fitness Studio emphasizes practical movement and nutrition strategies for adults, including older clients. Jeff Smith, a financial planning expert and co-founder of the podcast, focuses on retirement income and financial preparation.
Their combined perspective is useful because a retirement plan is more than an account balance. It is a plan for how you expect to live.
Eating for Longevity Without Destroying Your Budget
Healthy eating does not require expensive powders, specialty products, or a perfect diet. It usually begins with repeatable choices that support health and control grocery spending.
Consider building meals around:
- Beans, lentils, eggs, and other affordable protein sources
- Whole grains such as oats and brown rice
- Seasonal fruits and vegetables
- Frozen produce when fresh food is expensive or likely to spoil
- Water and unsweetened beverages
- Planned leftovers that reduce food waste
Meal planning can serve two purposes. It may help you eat more consistently, and it can make your grocery budget more predictable.
A simple weekly approach is to choose three or four core meals, buy overlapping ingredients, and prepare enough for leftovers. For example, roasted vegetables can serve as a side dish, a grain bowl topping, or an ingredient in soup. This reduces waste and lowers the temptation to rely on expensive takeout.
Nutrition is not a guarantee against disease. If you have diabetes, kidney disease, high blood pressure, food allergies, or another medical condition, follow individualized guidance from a qualified professional.
How to Add Health to Your Retirement Plan
1. Create a separate healthcare budget
List expected costs instead of placing healthcare under “miscellaneous.” Include:
- Medicare or private insurance premiums
- Deductibles, copayments, and coinsurance
- Prescription drugs
- Dental, vision, and hearing care
- Transportation to medical appointments
- Long-term care possibilities
- Healthcare costs before Medicare eligibility
2. Review tax-advantaged accounts
If eligible, a Health Savings Account, or HSA, can be useful for qualified healthcare expenses. Contributions may receive favorable tax treatment, investment growth may be tax-free, and qualified withdrawals may be tax-free under federal rules. Confirm eligibility and tax treatment with a qualified professional.
Compare an HSA with other tools, including flexible spending accounts, taxable savings, Roth accounts, and insurance coverage. No single account solves every retirement healthcare problem.
3. Protect your earning power
Health affects retirement preparation long before retirement begins. A serious illness or injury can reduce income, interrupt savings, and increase debt.
Review disability insurance, emergency savings, life insurance, and long-term care considerations as part of your broader financial protection plan.
4. Plan for a longer life
Improved health may allow you to live longer, which is positive but financially significant. A longer retirement may require more income, more investment discipline, and a thoughtful Social Security claiming strategy.
Your plan should address both risks:
- Living a long life and outliving your assets
- Experiencing a major health event that increases expenses
5. Make the plan behavioral
A plan that depends on willpower alone is fragile. Automate retirement contributions, schedule preventive appointments, put exercise on your calendar, and use a grocery list.
The goal is not perfection. The goal is to make healthy and financially responsible decisions easier to repeat.
A Practical Health and Wealth Checklist
Use this checklist once or twice a year:
- Estimate annual healthcare costs under your current coverage.
- Identify the expenses Medicare may not cover.
- Check whether you are eligible to contribute to an HSA.
- Review disability, life, and long-term care coverage.
- Schedule preventive care and recommended screenings.
- Set a weekly movement goal appropriate for your health.
- Build a grocery plan around nutritious, affordable foods.
- Check whether debt or overspending is reducing retirement contributions.
- Revisit your expected retirement age and income sources.
- Discuss your assumptions with qualified financial and healthcare professionals.
You can also strengthen your broader long-term wealth mindset by treating health, time, income, and savings as connected resources.
FAQs: Health as a Financial Asset in Retirement Planning
Is health really a financial asset?
Health is not an investment account, but it can affect your earning capacity, medical spending, independence, and retirement lifestyle. That makes it an important financial planning consideration.
How much should I save for healthcare in retirement?
There is no universal number. Fidelity’s $185,500 estimate is a benchmark for one 65-year-old retiring in 2026 under specific Medicare assumptions. Use it as a starting point, then adjust for your coverage, health, location, and long-term care risks.
Does Medicare cover all healthcare costs in retirement?
No. Medicare does not cover every premium, deductible, copayment, prescription cost, dental service, vision service, hearing service, or long-term care expense.
Can exercise lower retirement healthcare costs?
Regular physical activity may support better health and function, but it cannot guarantee lower costs. Exercise should be viewed as one part of a broader approach that includes medical care, nutrition, sleep, and risk management.
What is the best diet for longevity?
There is no single diet that works for everyone. A sustainable eating pattern built around nutrient-dense foods, adequate protein, fruits, vegetables, whole grains, and limited highly processed foods is a reasonable general framework.
Should I prioritize retirement savings or health expenses?
Most households need both. Continue building retirement savings while maintaining appropriate health coverage, paying necessary medical expenses, and using available tax-advantaged accounts when suitable.
What if I already have a chronic condition?
Do not assume retirement planning is hopeless. Instead, obtain a realistic estimate of ongoing treatment costs, review insurance options, protect income where possible, and coordinate medical and financial planning.
Can staying healthy let me retire earlier?
Not necessarily. Better health may support continued employment or greater independence, but retirement timing also depends on savings, income, debt, insurance, taxes, family responsibilities, and market conditions.
How often should I review my health and retirement plan?
Review it at least annually and whenever you experience a major change in health, employment, insurance, family responsibilities, or income.
Where can I learn more about Medicare?
Start with the official Medicare.gov website or call 1-800-MEDICARE. Be cautious of advice that promises unusually low costs or pressures you to make an immediate enrollment decision.
Conclusion: Build a Retirement Plan for Your Life, Not Just Your Ledger
Only about one in four U.S. adults feel highly confident about having enough money for retirement, according to Pew Research Center. Healthcare costs help explain why that confidence is difficult to achieve.
The answer is not to obsess over a single savings target. It is to build a more complete plan. Estimate healthcare expenses, protect your income, use appropriate accounts, train for independence, eat in a way you can sustain, and maintain relationships that support your well-being.
Your health cannot eliminate financial uncertainty. But when you care for it thoughtfully, you may improve your ability to work, save, enjoy retirement, and make your money last.
