How Financial Planning Can Help Treat the ‘Financial Toxicity’ of Cancer

A cancer diagnosis is never something anyone is ready for, but when it happens, the effects can go well beyond the physical and emotional traumas that turn lives upside down.

There are financial aspects that, if not addressed, can affect quality of life and even survival rates. Having a financial planner in their corner can help patients organize, ensure they're getting the most from their benefits and prepare as much as possible for whatever comes next. "With cancer, you get diagnosed, and then there is this few-week window before they start treatment," said Dr. Carolyn McClanahan, a physician and financial planner. That's a critical time for putting a plan in place, as "once you start treatment, it can be a drain on your physical and mental health."

The National Cancer Institute has a term for devastating financial consequences resulting from the high costs of medical care patients and their families face: financial toxicity. While it's inherently financial in nature, the stress it causes has real medical implications. That makes financial planning incredibly important, especially for those struggling with the high costs of care:

A pilot study of 107 patients being treated for blood cancers found that comprehensive planning resulted in higher mental and physical quality of life, among those experiencing financial toxicity.

Among patients facing a variety of high-risk diseases, along with financial toxicity, those who received financial planning intervention were 56% less likely to die during the course of their treatment.

No one may be more familiar with the need for that than Matthew Wolniewicz, the president of Income America and someone well-known as a friendly face in the retirement-planning business. He was successfully treated for non-Hodgkin's lymphoma in 2018. But last year, after what initially seemed to be a stroke, Wolniewicz found out that the cancer had returned. Now, it's in remission, and he's nearing his six-month appointment following a stem-cell transplant in March. "Once you hit the five year mark — it's considered the gold standard — you're really considered to be cured … It was pretty shocking that it came back," he said. "From a financial planning standpoint, it was kind of crazy."