Americans feel they’re in good shape physically but don’t have them same confidence about their financial health. Principal’s Financial Well-Being Index found that although 53% of Americans rate themselves as physically healthy, only 31% rate themselves financially healthy.
The Financial Well-Being Index is part of a quarterly survey conducted by Principal Financial Group among workers at business with 10 to 10,000 employees. The latest iteration found 84% of workers believe their physical health is an investment in their financial future.
This connection is clearly seen in the cost of health care later in life. Nearly 70% of respondents said they believed it was “extremely important” or “very important” to stay in good shape in order to avoid major health expenditures down the road. In May, Fidelity found a 65-year-old couple retiring in 2012 could need as much as $240,000 to cover medical expenses throughout retirement.
Survey results show that although respondents aren’t ignoring their financial health entirely, there’s plenty of room for improvement. Less than half of respondents said they are monitoring their spending levels. Twenty-eight percent have created a budget and 26% have re-evaluated their investments. Only 17% have a financial strategy.