Financial strain and loneliness in older adults

Abstract

ABSTRACT This study assesses whether changes in older adults’ financial situation after an economic shock are associated with feelings of loneliness. Data come from the 2006 and 2010 waves of the Health and Retirement Study (N = 2,510) which span the 2008 Great Recession. We conduct first-differencing and formal mediation analyses to determine whether change in financial situation is related to change in loneliness in older age and test potential mediation of personal and social resources. Results show that a higher level of loneliness in 2010 is associated with a higher level of subjective financial strain but not with changes in household income and net assets. The findings hold when accounting for personal and social resources. Knowledge of the direct link between financial strain and loneliness in older age provides an important insight for programmes and initiatives aimed at relieving widespread loneliness in later life.