Older Americans in the bottom 20% of wealth die nine years earlier than those in the top 20%. This is a stark reminder of how much money may matter when it comes to living a longer, healthier life.
You cannot magically transport yourself into the 20% of earners, but you can take concrete steps to strengthen your financial security, and maybe live longer as a result.
The wealth-health gap
According to research from the National Council on Aging and the LeadingAge LTSS Center at UMass Boston, mortality rates among older adults in the bottom 60% of wealth were nearly double those in the top 20%.
Even more concerning is that about 45% of older adult households don’t have enough income to cover basic living costs. That’s 19 million households struggling to make ends meet, according to Elder Index cost-of-living data.
Roughly 80% of households, about 34 million, couldn’t weather a major financial shock like a serious illness or the need for long-term care.
Money worries and life expectancy
Money troubles take a physical toll. When you’re constantly worried about paying bills or affording medication, stress hormones flood your system. This chronic stress weakens your immune system, raises blood pressure, and increases inflammation throughout your body.
Financial insecurity also limits access to preventive healthcare, nutritious food, and safe living conditions. Poor health leads to increased expenses, which in turn create more stress, ultimately worsening health outcomes. It’s a cycle that’s tough to break.
5 steps to greater financial security
You might not have a trust fund or a million-dollar portfolio, but that doesn’t mean you’re powerless. Here’s how to strengthen your position at any income level:
1. Master the fundamentals first
Create a realistic budget that tracks every dollar. Apps like Mint or YNAB can reveal spending patterns you didn’t know existed. Once you understand where your money is going, you can redirect funds toward savings and debt reduction.
Start building an emergency fund, even if it’s just $25 a month. Having $500 set aside can prevent a minor car repair from becoming a financial catastrophe. Aim for three to six months of expenses eventually, but don’t let that big number paralyze you. Start where you are.
2. Squeeze more from what you’ve got
Take advantage of every available benefit. If your employer offers a 401(k) match, contribute enough to get the full match. It’s free money. Look into programs like SNAP, utility assistance, or property tax relief if you qualify. These resources exist to help.
Consider a side hustle that fits your life. An extra $200 monthly could transform your finances. Freelance writing, pet sitting, or selling items online can generate income without demanding huge time commitments.
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3. Invest in your health now to save later
Preventive care may seem expensive today, but it’s significantly cheaper than treating chronic conditions later on. Take advantage of free health screenings at community centers, Medicare-covered preventive services, and don’t skip medications to save money. Instead, ask your doctor about generic alternatives or patient assistance programs.
Stay active with free or low-cost options like walking, YouTube workouts, or community fitness programs. Better health translates to fewer medical expenses and more years to enjoy.
4. Prepare for long-term care costs
Long-term care represents one of the biggest financial threats facing older Americans. Since Medicare doesn’t cover most long-term care needs, explore long-term care insurance while you’re still relatively young and healthy. If traditional policies are too expensive, investigate hybrid life insurance policies that include long-term care benefits.
Think strategically about where you’ll live as you age. Can your current home be modified for accessibility? Would downsizing free up cash while reducing maintenance? Some areas offer naturally occurring retirement communities (NORCs) that provide support services while letting you age in place.
5. Save through your community
Financial security isn’t a solo sport. Join or create groups focused on financial literacy, skill sharing, or mutual aid. When neighbors help neighbors, everyone’s resilience improves.
Share resources like tools, transportation, or bulk buying opportunities. Cook meals together to slash food costs or trade services based on your skills. Maybe you excel at taxes while your neighbor handles home repairs.
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Progress over perfection
You don’t need to implement everything immediately. Pick one or two manageable strategies and build momentum. This month, open a high-yield savings account. Next month, shop around for better insurance rates.
The goal isn’t to match the wealth of the top 20%, but instead to create enough stability that financial stress doesn’t rob you of years. Every dollar saved, every healthy habit formed, and every connection strengthened moves you toward a more secure future.
By controlling what you can (your spending, saving, health habits, and community connections), you’re not just improving your finances. You’re potentially adding years to your life, regardless of your wealth percentile.
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