Poor physical health and weak financial conditions are driven by the same psychological factors, a new study finds.
Have you ever wondered why poor people are generally unhealthy and unhealthy people are always in a financial crisis. A new study by researchers from Washington University may have an answer for you. They found that both these conditions are driven by the same psychological factors.
For the study, the researchers examined personal and health data from eight industrial laundry locations in multiple states across the country. They observed how many employees willingly contributed to a 401(k) retirement plan and how many didn't. At the start of the study, all participants were screened for any health issues. About 95 percent of them had at least one abnormal blood test and 25 percent had at least one severely abnormal finding. Physicians then advised these participants about the health risks and what they should do to ensure good physical health.
The study was carried out for two years during which researchers examined how many participants took appropriate measures to ward off the health risks that their physicians had earlier warned them about.
At the end of the study researchers found that the participants who willingly contributed to a 401(k) retirement plan were also more likely to take steps that ensured they enjoyed better physical health. Influencing factors like initial health, demographics and job type were accounted for in the study.
"We find that existing retirement contribution patterns and future health improvements are highly correlated," the study authors said in a press statement. "Those who save for the future by contributing to a 401(k) improved abnormal health test results and poor health behaviors approximately 27 percent more than non-contributors."
This is not the first time financial saving has been linked to better physical health. Previous studies have highlighted that being financially healthy can help you achieve your goals and carry out your projects. Needless to say, good financial health saves you stress.
Another health and wealth relationship is that people in poor health often die at a relatively young age and spend thousands of dollars on prescription drugs and health care costs. This money could have been invested for future savings. Many don't live long enough to collect the pension and Social Security benefits that they spent a lifetime working for. On the other hand, those who practice recommended health behaviors more likely exceed average life expectancy and need a large retirement nest egg to insure that they don't outlive their assets. Most financial planners routinely plan for life expectancies in the mid 90s to assure that their clients don't run out of money.
Findings were published online in the journal Psychological Science.
