Financial Strain and Mental Health among Older Adults: Lingering Effects of the Great Recession?

• In Event: 349 - Section on Aging and the Life Course Roundtable Session
  In Refereed Roundtable: Table 02. Health over the Life Course

Abstract

The economic recession has garnered the interest of many scholars, with much attention being drawn to how the recession has affected labor force participation, household wealth, and even retirement decisions. Certainly, the Great Recession has affected the financial well-being of older adults, but has it had discernible effects on health? This research draws on 5,205 respondents from the Health and Retirement Study (2006-2010) to link financial strain, the Great Recession, and the mental health of older adults. Guided by cumulative inequality theory, this study examines whether the economic downturn affected anxiety and depressive symptoms over a four-year period. Respondents most likely to experience increased financial strain following the Great Recession occupied a lower socioeconomic status, and were exposed to greater negative social support. Results from residual change models reveal that greater financial strain in 2006 and increases between 2006 and 2010 independently produce harmful effects on mental health—greater anxiety and depressive symptoms. Building on prior research, this study provides evidence that the Great Recession not only affected the financial well-being of older adults, but also had discernible effects on mental health.

Author

• Lindsay R. Wilkinson, Baylor University