It provides a sense of security.
By the Editorial Team | February 27, 2024 | Conseiller.ca
Heritage has a decisive influence on health by providing a sense of security that goes beyond its financial value.
A recent study
from the Quebec Observatory on Inequalities highlights that this heritage acts as a safety net, offering a sense of control that impacts both overall well-being and psychological health.
“The study mentions, “Heritage provides those who possess it with a sense of power, in addition to fostering financial stability, social influence, and the well-being of future generations. This is why it can impact both psychological and physical health.” “
It emphasizes that heritage protects against various health issues, complementing income.
INCREASED LIFE EXPECTANCY
Surveys conducted in several OECD countries reveal that individuals with a higher net worth in their fifties have a lower risk of death over the years. In Quebec, individuals in the highest income bracket have a life expectancy six years longer than those in the lowest income bracket.
In the United States, sociologists have shown that having savings and investments reduces the risks of chronic illnesses, work disabilities, invalidity, and psychological distress. On the other hand, lower wealth is associated with greater vulnerability to infant mortality and obesity.
Beyond its financial aspect, heritage, which is more stable than income and combines both material and immaterial assets, also influences life satisfaction. This subjective factor of well-being is closely linked to health, the study emphasizes.
HEALTHIER OWNERS
Real estate plays a major role in this dynamic, representing 35% of the total assets of Quebec households in 2019.
Homeowners are more likely to rate their health as “very good” or “excellent,” while renters tend to view it as average or poor.
Quebec homeowners report better overall health than renters, with only 8% perceiving their health as poor or fair, compared to 17% among renters.
In addition, renters are twice as likely to rate their mental health as fair or poor.
While these results suggest a protective effect of homeownership on health, the authors of the study emphasize the need for further analysis to establish a cause-and-effect relationship.
GREATER STABILITY
Researchers highlight that the stability resulting from homeownership positively contributes to health, just as owning other assets such as a financial cushion, a private retirement plan, life insurance, a vehicle, jewelry, or other valuables does.
However, this situation also perpetuates wealth inequalities, with the richest 20% of families in Quebec holding 68% of the total accumulated wealth. Homeowning families have wealth 20 times greater than renters, holding 70% of assets in RRSPs and 55% of assets in TFSAs.
The richest 20% of families captured 66% of the increase in wealth observed between 1999 and 2019.
To reduce these wealth inequalities, the observatory suggests promoting financial security and access to credit.
Source: Conseiller.ca
