There is an interesting study released this week on global readiness for retirement and aging.  It compares 14 nations in a variety of specific categories.   According to Catherine Collinson, of Transamerica Center for Retirement Studies, “We can do a lot better to improve our retirement outlook, but when compared to our peers around the world, we are actually doing quite well.”  While the US is in good shape compared to other nations, that is not the only item of note in this report.

The study looked at how much is saved, how much is needed, what are the different retirement goals, level of confidence in current trajectory, and understanding and following a “retirement plan.”  It also shows another interesting link, that those that are healthier are far more optimistic about their futures.  In some ways, this is not a surprise, as health-related expenses are the single biggest expense for many.  It would make sense that those that are free of chronic or other illnesses would feel more optimistic.  However, this goes slightly beyond that.

Those that are in better health are simply more optimism about their lives.  Beginning in Part 4, page 16  of the report, you can see the detailed correlation between being healthy and being prepared for retirement.  According to the report, “Workers who engage in healthy behaviors tend to be more ready for retirement compared to those who do not. Those who report any one of the following activities (e.g., eating a healthy diet or taking regular exercise) show higher ARRI (Aegon Retirement Readiness Index) scores than those who don’t.”  The study does not say the relationship is causal, but it would make sense that those that take care of their health through a variety of positive habits would have more options in retirement and would include retirement planning as one of their positive habits.

At a time when life expectancy continues to increase year by year, I expect that we will begin to see health issues become just as important as financial issues when talking about retirement preparedness.  In fact, one of the recommendations of the study involves developing a strategy to improve your health now if needed and to maintain a healthy lifestyle as part of your retirement goals.