Health-related financial risks are becoming an increasingly important consideration in retirement planning. According to research from LIMRA Retirement Income Institute, chronic conditions are widespread among U.S. adults, with approximately 76% living with at least one major chronic illness and many managing multiple conditions. These health challenges often require ongoing treatment, monitoring, and care that can continue well into retirement.

As people live longer, many may spend additional years managing chronic diseases, functional limitations, or cognitive decline. The research notes that the gap between lifespan and healthy lifespan can be significant, meaning individuals may spend a substantial portion of later life coping with health-related challenges that require ongoing financial resources.

Because health conditions often develop gradually and persist over time, they can create financial pressures that differ from many traditional retirement risks. Healthcare costs, caregiving expenses, and long-term care needs can become important factors in retirement income planning. Understanding these risks may help individuals and financial professionals develop more holistic retirement strategies that address both financial and health-related realities.