Money and longevity

Investment Analysis Clubs Macro Economic Trends and Risks
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The U.S. is the only major economy without a nationalized health care system. Health care in the U.S. can be astronomically expensive. As many as 62% of bankruptcies include significant medical debt.

I personally benefited from my wealth when I paid for an MRI out of pocket which discovered tiny breast cancers in both breasts. I knew that my insurance wouldn’t pay for the MRI so I didn’t bother asking. I just paid cash on the barrelhead. The tumors were Stage 1 so I didn’t need chemotherapy. The top-line cost for treatment was well north of $150,000. This was paid for by health insurance, except for the $5,000 deductible which I paid out of pocket. (That was in 2015 and I had private insurance.)

Now I am on Medicare but the same principle applies. DH and I can afford to have traditional Medicare with Part G Medigap insurance (the gold standard). Most elderly Americans choose Medicare Advantage which is much less expensive but notorious for delaying and denying expensive treatments like my recent open-heart surgery. I can’t wait to see the top-line bill for my surgery plus 9 days in the hospital. But I don’t feel stressed because I know that it will all be covered by Medicare and Medigap insurance.

But many of my most life-preserving activities are free or even save money. I exercise 7 days a week, taking Zumba classes over Zoom and walking. I cook at home, avoiding the expense and unhealthy food of restaurants. I volunteer as an AARP tax aide which is a social activity.

https://www.wsj.com/health/wellness/life-expectancy-longevity-wealth-1f15a18a?mod=wknd_pos1

Money Can Buy a Longer Life—to a Point

Saving makes your nest egg last longer. Spending might make you last longer.

By Joe Pinsker, The Wall Street Journal, Dec. 28, 2024

The rich get richer—and older. People with high salaries and net worth tend to live longer lives, research shows.

Once Americans make it to their late 50s, the wealthiest 10% live to a median age of around 86 years, roughly 14 years longer than the least wealthy 10%…

Though you can’t add more months or years to your online shopping cart yet, health and aging researchers say there are ways to spend money to improve your chances of living longer. They suggest favoring purchases that help you track your health, stay active and reduce stress…

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A target “date of death” has a huge impact on financial decisions. When choosing the Social Security start date, it’s important to realize that you only benefit by delaying to age 70 (instead of starting at age 62) if you live longer than the break-even age of 87.

Since both my parents died around age 70 I naturally opted to begin Social Security at age 62. (Same with DH whose father died of COPD at age 65 – DH already has COPD and still smokes.)

Every individual is different. But it’s true that financial resources can extend life significantly.
Wendy

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Many speak of “my parents died at age x” as a guide but rising life expectancy changes that number too. Most of us who live to x can probably expect at least 10 more years.

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I agree with all your main points. One quibble, there are three break-even points:

  1. Between claiming at 62 vs. Full Retirement Age (FRA): Around age 77
  2. Between claiming at 62 vs. age 70: Around age 80-81
  3. Between claiming at FRA vs. age 70: Around age 82-83

Another consideration is if the spouses have different benefits. In that case (taking into life expectancy considerations of course) the higher-earning spouse should delay, but the lower-earning spouse should claim early.

If the higher income spouse dies first, the lower income spouse can claim the higher survivor’s benefit, which likely erases the benefits of lower spouse delaying. So the early/delay strategy makes sense for that reason.

If the lower income spouse dies and claimed early, the higher income spouse already has the higher benefit, plus got the utility of the money from lower income spouse early claim. So the early/delay strategy makes sense for that reason too.

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My calculation (long ago) was that break even was 83. Either way, the “target date of death” is fraught (obviously.)

My parents both lived to their 90’s. But my mother’s mother died at 27, her father at 66. My father had 5 brothers and 2 sisters. One brother died of a heart attack in his 60’s, several others into their 80’s, and one brother into his 90’s. One sister in her 70’s and one in her 90’s. All with the “same genes”, of course,

Ya never know. I hope to make it to 90, but if I only get to 89 I’ll take it :wink:

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