Economic inequality and mental health in older adults: Exploring new dimensions of economic well-being

Abstract

Economic inequality is a persistent global issue with profound implications for mental health, particularly among older adults. Previous studies have largely focused on objective economic well-being indicators such as income, employment status, and poverty. While these factors are crucial, emerging evidence suggests that welfare benefits and subjective economic well-being components of what can be deemed augmented economic well-being, may play equally significant roles in shaping psychological health among aging populations. This research explores how disparities in these aspects contribute to psychological distress in older adults. We highlight the role of financial security, government assistance programs, and personal economic satisfaction. We propose policy interventions to mitigate adverse effects and emphasize the need for a holistic approach to economic well-being to improve mental health outcomes in older adults. This study reveals that subjective financial security and access to welfare benefits often surpass income as predictors of mental health. These insights underscore the importance of broadening economic frameworks in aging research and developing integrated policies to enhance financial and psychological well-being.

Keywords: Economic inequality; Mental health; Older adults; Welfare benefits; Subjective economic well-being; Augmented economic well-being; Narrative review; Financial security

Core Tip: By addressing both objective and subjective dimensions of economic well-being, policymakers can develop more effective strategies to support the mental health of older adults in an increasingly unequal world. The integration of financial planning education, equitable access to resources, and improved welfare structures can contribute to reducing the long-term psychological burden of economic insecurity on older individuals.