WEALTHSPAN
ALIGNING OUR HEALTHSPAN WITH WEALTHSPAN BEYOND OUR LIFESPAN
“Balancing Healthspan and Wealthspan”
In the triad of Lifespan, Healthspan, and Wealthspan, each component holds equal significance. While nurturing your Healthspan ensures a life of vitality, safeguarding your Wealthspan guarantees the means to cherish it.
Lifespan and Healthspan: Lifespan is the total number of years a person lives, while Healthspan focuses on the years you spend in optimal health and vitality. It’s about cherishing those years, not just counting them.
The Importance of Healthspan: Your true Wealth is not just measured in dollars; it’s “The Priceless Currency of Health”. A longer life is undoubtedly desirable, but what if those years are marred by illness and discomfort? Prioritising Healthspan means staying clear from diseases and enjoying the maximum number of healthy years possible.
Wealthspan refers to having a reliable source of liquid funds that extends longer than both your Healthspan and Lifespan. It’s the assurance of having financial resources readily accessible to support your needs and aspirations. Moreover, it should be designed to transcend your lifetime, creating an enduring legacy for your descendants, enabling “multi-generational Wealth Transfer” that secures their future for generations to come.
Lifespan, Healthspan, Wealthspan
“The 100 Healthy and Wealthy Years for the Generations to come”
Wealthspan: Sustaining Financial Well-being Throughout Extended Lifespans
As global life expectancy continues to rise, individuals are increasingly confronted with the challenge of ensuring their financial resources endure throughout their extended years. This necessitates a shift from traditional retirement planning to a more comprehensive approach that encompasses the entirety of one’s financial life—a concept encapsulated by the term wealthspan.
Defining Wealthspan
Wealthspan refers to the duration over which an individual’s accumulated financial assets—encompassing retirement savings, investments, real estate, and other holdings—are sufficient to support their desired lifestyle and obligations. Unlike the more commonly discussed “retirement income,” which focuses on periodic payments from pensions or social security, wealthspan considers the totality of one’s financial resources and their longevity.
The Interplay of Lifespan, Healthspan, and Wealthspan
In the context of healthy longevity, it’s essential to consider the interplay between three critical spans:
- Lifespan: The total number of years an individual lives.
- Healthspan: The portion of the lifespan during which an individual maintains good health and functional independence.
- Wealthspan: The period during which an individual’s financial resources adequately support their lifestyle and needs.
An imbalance among these spans—particularly when wealthspan is shorter than lifespan—can lead to financial insecurity in later years, undermining the quality of life and independence.
Addressing Longevity Risk
A central concern in wealthspan planning is longevity risk—the possibility of outliving one’s financial resources. This risk is exacerbated by factors such as increasing healthcare costs, inflation, and the potential need for long-term care. Effective wealthspan planning involves strategies to mitigate these risks, ensuring that financial resources remain sufficient throughout the entirety of one’s life.
Incorporating Legacy Planning
Beyond personal financial security, many individuals aspire to leave a legacy, whether through bequests to family members, charitable contributions, or other means. Incorporating legacy goals into wealthspan planning adds another layer of complexity, requiring careful consideration to balance current needs with future aspirations.
Strategies for Extending Wealthspan
To effectively manage and extend one’s wealthspan, individuals should consider the following strategies:
- Comprehensive Financial Planning: Developing a holistic financial plan that accounts for various income sources, expenses, and potential risks. Especially considering the changing needs and requirements with advancing age and different life stages.
- Diversified Investment Portfolios: Maintaining a balanced and diversified investment strategy to protect against market volatility and inflation. This needs to be lifestage adjusted and plan for life events.
- Regular Financial Reviews: Periodically reassessing financial plans to adapt to changing circumstances and goals.
- Healthcare and Long-term Care Planning: Anticipating potential healthcare needs and associated costs, including insurance coverage and savings for long-term care.
- Estate and Legacy Planning: Establishing clear plans for asset distribution to ensure legacy goals are met without compromising personal financial security.
By proactively addressing these areas, individuals can enhance their financial resilience, ensuring that their wealthspan aligns with or exceeds their lifespan, thereby supporting sustained well-being and the fulfillment of legacy objectives.