Health and wealth have more in common than their phonetic similarity, with each having a significant potential impact on the other. Here are some ideas about talking to clients about what can be a tricky topic.

It’s well known that illness and disability are significant diminishers of personal wealth.

That’s one of the reasons to be concerned that 50 per cent of Australians have at least one chronic disease, according to the latest data from the National Health Survey conducted by the ABS. More troubling is that the statistic rises to 90 per cent for people aged 65 and older.

It’s a double-edged sword. Not only does chronic disease reduce people’s ability to work and generate wealth; the resulting disability can be a drain on family wealth.

Those statistics pre-date COVID-19. And doctors are seriously concerned about the consequences of people with chronic illnesses neglecting routine check-ups because of social distancing. They are also worried about the mental health impact of COVID-19, not least because of reduced investment income, reduced capital, failing businesses and underemployment.

The link between mental and financial health can be a dangerous cycle: financial stress can lead to poor mental health, which can make taking action to protect your financial health harder, say psychiatrists at the Black Dog Institute, a respected Australian mental health research organisation.

Commenting on the impact of COVID-19, the institute says people may engage in unhealthy behaviours to try to cope with financial stress, including overeating and alcohol and drug misuse, which in turn can worsen mental health.

“Ongoing stress about money has been linked to physical ill-health too, such as migraines, heart disease and sleep problems,” they say.

The good news is that more than one-third of chronic disease can be prevented by reducing risk factors such as physical inactivity, obesity, smoking and alcohol use, according to a study by the Swinburne University of Technology in Melbourne.

Over and above appropriate advice about risk cover and asset allocation, there’s much an empathic financial planner can do to help a client during these difficult times.

While talking to clients about what their health can be tricky, it can be helpful just to show you care.

It may also be less confronting for clients to put a financial angle on health-related conversations. For example, if you know someone has a chronic illness like type 2 diabetes, a heart complaint or high blood pressure, it might be useful to remind them that they can access bulk-billed GP consultations via the phone or a video app.

Sometimes, it helps to use yourself as an example, and explain how easy you found the process.

If you notice that a client is smoking more than usual, you could put a financial lens on the issue by helping them work out the dollar cost of smoking. There are many smoking cost calculators on the internet, including one sponsored by the Victoria Government. It shows that an Australian who smokes 15 cigarettes a day will puff away about $45,000 in 10 years.

Other useful knowledge to share includes the availability of Government-funded heart health checks for anyone over the age of 45 (or over 30 for people of Aboriginal or Torres Strait Islander descent). Then there are Medicare-funded psychologist appointments, exercise physiology for people with certain chronic conditions and home care packages for older people. The place to start for all of these is the GP, who can also help with smoking cessation.

More good news is that people who take their financial health seriously are far more likely than others to take risk-reducing action when they need it.

A study of US employees shows that the same underlying psychological factors linked to retirement planning also predict how likely people are to change their lifestyle if this is suggested by a doctor.

“Retirement contribution patterns and future health improvements are highly correlated,” write the researchers in the Journal of Psychological Science.

Their Healthy, Wealthy and Wise study found that participants who made regular retirement contributions were 27 per cent more likely to take positive action after receiving bad news than those who were not saving for retirement.

Here are four tips from the Money & Life Wellbeing and Wealth eBook to help you connect with clients about their health, and trigger positive changes:

KEEP IT SHORT AND POSITIVE: Depending on the scope of what you usually discuss, it might feel uncomfortable to dedicate too much time to what’s going on for your client healthwise. Introduce the topic in a positive way, perhaps by telling them about a health or wellbeing benefit you’ve experienced or heard about from a friend or colleague.

CHECK-IN FREQUENTLY: A single conversation rarely triggers a change in behaviour. Building up to a broader discussion about future financial and health outcomes will take time, so try to keep this subject top of mind each time you’re in touch with a client, without letting it dominate. Having these conversations in play also gives you more opportunities to check in with, and connect with, your clients.

BE RESPECTFUL OF DIVERSITY: People from different generations, cultures and socioeconomic backgrounds will have a range of standards and expectations for a healthy lifestyle. Look for ways to offer encouragement, rather than judgement, when clients are struggling to stick to healthy behaviours.

FOLLOW YOUR OWN ADVICE: You’re likely to be much more convincing in the role of health mentor or advocate if you’ve taken steps to make changes to your own behaviours and health outcomes. Taking responsibility for managing your diet, exercise routine and stress-levels can give you direct experience of what does and doesn’t work. While your health habits won’t necessarily be right for everyone, your insights and stories of success can offer clients positive cues and food for thought.