This study investigates the "Negative Spillover Effect"-a conceptual framework that highlights the correlation between older adults' community safety concerns and depressive symptoms. It explores the moderating influence of the sense of freedom in this relationship. Through the analysis of data from 3408 participants in the China Labor-force Dynamics Survey, employing a two-stage least squares regression approach, the study uncovers the intricate role of the sense of freedom in influencing the depressive symptoms of older adults based on their community safety concerns. The sense of freedom serves as a protective factor against the adverse psychological effects of community safety concerns when they are strong. However, this protective role diminishes when coupled with a low perception of the fair match between labor input and living condition rewards. The study underscores the importance of addressing and mitigating the negative spillover effect to foster sustainable and equitable community development. Reducing these adverse effects is essential for enhancing the mental health and well-being of the older demographic.