The Loneliness Curve and Your Social Capital

You have spent your working years saving, building up your financial capital, intent on living a rich life in retirement.

But have you focused on your financial capital at the expense of your social capital?

To be blunt, where are you on the loneliness curve?

According to a recent study by the University of Michigan, more than one-third of older adults experience feelings of loneliness at least once a week.

Loneliness is increasingly recognized as a significant public health issue, particularly among the elderly. The U.S. Department of Health and Human Services reports that the consequences of insufficient connections include a 29% increased risk of heart disease, a 32% increased risk of stroke, and a 50% increased risk of developing dementia.

The health risks of loneliness are well-documented. But how about financial risks?

A team of researchers from USC found a correlation between loneliness and financial scams. On top of that The AARP Public Policy Institute estimates that social isolation among older adults costs Medicare an additional $6.7 billion annually. These costs arise from increased hospitalizations, higher rates of nursing home admissions, and greater reliance on emergency services.

Over the past twenty-five years, I have written about the importance of building a “financial team” to help guide you in financial matters when cognitive and health issues set in.  

Are you building a team around you to support you on the loneliness curve of your social capital?

 Stay tuned – we will cover that next week.
 
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