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A lack of financial planning predicts increased mortality risk: Evidence from cohort studies in the United Kingdom and United States

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  • Joe J Gladstone
  • C Sean Hundtofte

Abstract

We investigate whether a lack of planning and future-orientation in financial behavior is associated with a higher mortality risk. Our evidence is based on two nationally representative cohorts of older people living in the United States (n = 11,478) and England (n = 11,298), where we compared individuals’ self-reported planning horizons on spending and saving with government mortality records. Controlling for demographics, participants with a 1 SD shorter planning horizon had a 9% greater hazard of dying in the English sample (evaluated over 10 years), and a 7% greater hazard in the US sample (over 22 years). These differences in mortality risk could not be explained by variation in respondent’s life expectancy, their financial circumstances or a range of other observable covariates. Similar results are found for self-reported health, with the positive association between longer planning horizons and health strongest for those with fewest financial resources.

Suggested Citation

  • Joe J Gladstone & C Sean Hundtofte, 2023. "A lack of financial planning predicts increased mortality risk: Evidence from cohort studies in the United Kingdom and United States," PLOS ONE, Public Library of Science, vol. 18(9), pages 1-14, September.
    • Handle: RePEc:plo:pone00:0290506
    DOI: 10.1371/journal.pone.0290506
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    References listed on IDEAS

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    1. Matthew Rabin & Ted O'Donoghue, 1999. "Doing It Now or Later," American Economic Review, American Economic Association, vol. 89(1), pages 103-124, March.
    2. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 443-478.
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