As life expectancy increases, healthspan is decreasing, impacting your financial planning.

• The average American is living longer.
• The health span of older people is decreasing.
• Chronic medical conditions are generally associated with higher healthcare expenses.

Now, the positive news: People in the United States are experiencing longer lifespans compared to previous generations.

The negative financial consequences of older Americans spending more years in poor health often come with medical and financial experts.

The Centers for Disease Control and Prevention report that the average U.S. life span has increased from 70 years old to 77.5 since 1960.

But "health spans" are simultaneously shrinking.

According to Susan Roberts, a professor of medicine and epidemiology and senior associate dean for foundational research at Dartmouth College, a health span refers to the number of years in which individuals maintain good health.

In the 1960s, the average person spent approximately 5 years with chronic ailments such as diabetes, cancer, arthritis, cardiovascular disease, dementia, cataracts, or osteoporosis. However, today, the average person spends about 10 years with these same chronic conditions, which is roughly double the duration from half a century ago, according to Roberts.

The gap between one's life and health spans is increasing, she stated.

Though medicine has improved at keeping sick individuals alive, it may not always effectively treat them, according to Roberts. Additionally, obesity, a contributing factor to numerous chronic illnesses, has become increasingly prevalent in the United States, affecting 42% of adults, as per CDC data from 2021.

How health impacts wealth

Stacy Francis, a certified financial planner in New York and a member of CNBC's Advisor Council, emphasized the importance of the concept of health span for a household's finances.

According to Francis, president and CEO of Francis Financial, adults are increasingly investing in activities that do not promote their optimal well-being, leading to substantial financial costs.

According to the CDC, nearly 90% of the country's $4.5 trillion in yearly healthcare expenditures are for individuals with chronic illnesses and mental health issues.

As chronic ailments progress, medical costs deteriorate, according to Roberts.

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In 2023, the average 65-year-old retiring this year will spend approximately $159,000 in out-of-pocket health and medical expenses in retirement, according to Fidelity Investments.

Experts stated that chronic conditions have a significant financial impact on households through out-of-pocket treatment costs and early retirements due to poor health.

Claiming Social Security earlier than expected for early retirement may result in a lower monthly benefit, according to Carolyn McClanahan, a physician and CFP based in Jacksonville, Florida.

As Susan Silberman, senior director of research and evaluation at the National Council on Aging, stated in a 2022 briefing, a person's health has a direct impact on their wealth, with this connection becoming increasingly evident as people age.

Of course, it's not true that healthy individuals never incur significant medical expenses.

According to McClanahan, the founder of Life Planning Partners and a member of CNBC's Advisor Council, an individual who maintains good health may ultimately pay less over the long term in terms of healthcare costs compared to someone who requires long-term care, which can become more expensive and more likely as age progresses.

She stated that healthy individuals tend to have more "go-go" years, which allows them to travel and enjoy themselves.

Invest in yourself

According to McClanahan, it's irreversible when you reach your 40s and 50s.

If adults don't prioritize their health by a certain age, they increase their risk of developing chronic diseases such as diabetes and high blood pressure, which can result in sudden health problems like strokes and heart attacks, she stated.

Francis advised treating purchases of healthy food, gym memberships or exercise classes as an investment in oneself. She suggested prioritizing spending on health and, if it feels too expensive, cutting back on spending that doesn't increase one's lifespan.

Francis compared his thoughts on the matter to an investment he made in his 401(k).

The additional money will extend your lifespan and compensate for it, as she stated.

According to Roberts, more than half of people can reverse a diabetes diagnosis by losing 10% of their weight within the first seven years of that diagnosis.

The "biggest tragedy" of chronic ailments is that "they're preventable," Roberts said. A few dietary tweaks, such as eliminating sugary drinks like soda and juice, and eating small, healthy snacks like an apple, can make a "dramatic difference," she said.

"Becoming accustomed to eating nutritious foods is not challenging," Roberts stated. "Just give it some time and practice self-compassion."