Why wellbeing matters for long-term wealth

When you think about accumulating wealth for the future, you might focus on increasing your income, saving for retirement and building a strong investment portfolio.

However, looking after your physical and emotional wellbeing could play an equally important role in helping you achieve your goals. In fact, your health and long-term financial security are closely connected.

Wellness supports clear-headed decision-making, resilience and the ability to enjoy your wealth. While careful planning could reduce the uncertainty and stress that financial concerns often trigger – especially in affluent individuals with complex assets and responsibilities.

Keep reading to learn more about the relationship between wellbeing and long-term wealth and find out how financial planning could enhance both.

Maintaining physical and mental health is crucial for building and preserving wealth

High net worth individuals (HNWIs) tend to be ambitious and driven to succeed. Whether your priority is to fund an early retirement or leave a meaningful legacy to loved ones, accumulating and growing wealth is likely a key part of your long-term plan.

You might think the best way to achieve these goals is to work harder, assume more responsibility and take on more investment risk. However, while your hard work and dedication may have got you where you are today, it’s important not to neglect your physical and mental health.

Wellness is a powerful driver of wealth because it supports:

• Clear thinking and balanced decision-making – As an HNWI, your financial stability might depend on your ability to run businesses, oversee investments and navigate complex financial transitions
• Longevity and a longer health span – Taking care of your wellbeing could not only boost your life expectancy but also increase the number of years you live in good health. This means you’ll have more time to enjoy the wealth you’ve worked so hard to build and grow
• Protect business continuity and family wealth – For HNWIs, a serious illness or prolonged burnout could impact more than personal income; it may also disrupt business leadership, investment decisions and succession planning. Prioritising wellbeing could help you stay engaged in key decisions for longer, while putting contingency plans in place to preserve wealth across the generations
• Better choices – Emotional stability helps you stay calm and focused even if you experience unexpected financial shocks, like redundancy. This reduces the risk of reactive, rushed financial decisions that could hamper your progress towards your long-term goals

Financial stress could undermine your wellbeing

According to research published by IFA Magazine, 62% of adults are either concerned or very concerned about their finances. Moreover, 79% of this group say their money worries impact their mental wellbeing.

While it’s often assumed that wealth provides a cushion against such anxieties, HNWIs are not immune to financial stress and the health implications it can trigger. Indeed, the more assets you have, the more there is to monitor and protect.

Wealth can bring significant responsibilities, such as managing a business and providing for children. You might also feel the pressure to maintain a certain lifestyle for yourself and your family.

All of which could be emotionally draining and make it harder to stay healthy. According to AllHealthMatters, financial stress could lead to:

• Poor sleep – The research by Financial Capability reveals that one in four working adults have lost sleep over money worries
• Anxiety and low mood – Uncertainty and unexpected costs could gradually erode your confidence
• Physical symptoms – Chronic stress could trigger headaches, stomach problems, fatigue and many other symptoms that might make it harder to live and work as you want to
• Relationship difficulties – Finances are a common source of tension between partners and families. Survey findings published by Virgin Money UK show that one in three UK adults say hiding their money worries is damaging their relationships. HNWIs may be more inclined to keep their concerns private if they’re used to being successful and providing for others

How financial planning promotes better health

While better health supports smarter financial decisions, the relationship also works in reverse: effective financial planning helps reduce stress and improve wellbeing.

According to Financial Planning Today, 72% of people who have a financial plan and review it at least once a year said they benefit from average or above-average mental health. In contrast, 48% of those without a plan had below-average mental health, and 43% felt physically unfit.

Working closely with your financial planner could enhance your wellbeing and long-term wealth by:

• Replacing the stress of uncertainty with a clear plan – Your financial planner can use cashflow modelling to help you understand your current financial situation and create a roadmap for achieving your long-term goals
• Putting a financial safety net in place – Ensuring you have adequate financial protection for you and your loved ones, such as life insurance, provides valuable peace of mind
• Planning for retirement and succession – This is crucial for preserving your long-term wealth while also giving you the confidence to enjoy your money now, knowing the future is taken care of
• Offering ongoing support – Your financial planner can provide ongoing coaching and guidance to help you navigate changes, life events and financial challenges. This encourages calmer decisions and reduces feelings of overwhelm, which could harm your wellbeing

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate cashflow planning.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.