We often worry about saving enough for retirement, but a similar threat to a happy and healthy retirement is the rising cost of loneliness. But there are steps you can take right now to build your social capital.
According to the U.S. Surgeon General, loneliness and social isolation are serious health epidemics. Older adults may also be at increased risk because they are more likely to live alone, lose friends and family, and get sick.
This number is alarming. More than one-third of older adults experience feelings of loneliness at least once a week, according to the University of Michigan's National Poll on Healthy Aging. While it's tempting to blame this increase on social media or recent events like the pandemic, the truth is that loneliness has been on the rise for the past two decades.
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This trend highlights the importance of recognizing and addressing loneliness as a key component of well-being, especially as we age. Therefore, alongside financial assets, cultivating and maintaining social connections should receive equal emphasis in retirement planning.
The deadly toll of loneliness
Research shows that we reach a peak in the diversity of our social connections around age 40. Since then, there has been a major shift towards spending more time alone, according to a report from Our World in Data.
(Image credit: Our world in data)
Being alone doesn't necessarily equate to loneliness, but if we look at the overall situation, we can see that our social networks are decreasing. From 1990 to 2021, the percentage of Americans with 10 or more friends decreased dramatically from 33% to just 13%, according to the Center for American Lifestyle Research.
The effects of this social isolation can be severe and life-threatening. According to the Centers for Disease Control and Prevention (CDC), loneliness is associated with many health problems, including heart disease, stroke, type 2 diabetes, depression, anxiety, addiction, dementia, and even premature death. That's what it means.
To put this into perspective, the health risks of social isolation are equivalent to smoking 15 cigarettes per day.
Considering these findings, it is clear that flaming social networks is an unacceptable health risk.
The economic impact of loneliness
The potential economic impact of loneliness is even more urgent.
Similar to a University of Southern California Keck School of Medicine study published in Aging & Mental Health, researchers found that Americans over 50 who feel lonely and dissatisfied with their relationships are more likely to fall victim to financial fraud. It has become clear that Isolation limits the opportunity to discuss financial issues with others, making it a prime target for scammers who pretend to offer emotional support and exploit you financially.
Furthermore, as social isolation worsens chronic diseases, medical costs and stress levels skyrocket, especially impacting people without a support network when they are sick. A 2017 AARP study found that social isolation is associated with an estimated $6.7 billion in additional federal Medicare spending annually.
Fundamentally, social support networks, like any financial asset, are critical to quality of life in later life, highlighting the dual importance of fostering both financial and social health. I am.
fight against loneliness
Now imagine a solution to loneliness that is more effective than any drug, protects you from the harmful effects of loneliness, and enhances your health and well-being. The solution is friendship.
Simply put, fostering good relationships keeps us healthier and happier.
The CDC recommends fighting loneliness by spending time with loved ones, joining clubs and groups, enjoying nature with others, expressing gratitude, and volunteering. is suggesting.
Dr. Jeremy Nobel, an author and lecturer at Harvard University, emphasizes the power of connection in many forms, from chatting in the grocery store line to creative activities. For example, art and exercise reduce stress, increase “feel good” hormones, and sustainably increase mental well-being.
After all, overcoming loneliness requires active steps. Do something every day that connects you with others or the wider world.
Start Early: Compound Interest of Friendship
The key to combating loneliness and reaping the benefits of social connections may be to start early, just like your approach to saving and investing.
A recent survey by the American Psychiatric Association found that one in three young people (ages 18 to 34) report feeling lonely almost every day or multiple times a week, indicating an epidemic of loneliness. This highlights the importance of dealing with loneliness from a young age.
The sooner you start consciously building a connection, the stronger that bond will become over time. As with any financial investment, the earlier you start, the greater the compounding benefits you'll reap later in life.
Take, for example, the legendary 56-year friendship between Charlie Munger and Warren Buffett. No wonder Buffett once advised: He said, “As you go through life, your friends shape you. Make some good friends and stick with them for the rest of your life.”
So next time you're out with friends, remember that picking up the tab isn't a cost, it's an investment in your health and future well-being.
