CHANGES IN MARITAL AND HEALTH STATUS AS RISK FACTORS FOR A SUBSEQUENT NEGATIVE WEALTH SHOCK IN THE US, 1996–2020
2024

Risk Factors for Negative Wealth Shocks in Older Adults

Sample size: 25265 publication Evidence: moderate

Author Information

Author(s): Cho Tsai-Chin, Adar Sara, Choi HwaJung, Langa Kenneth, Kobayashi Lindsay

Primary Institution: University of Michigan

Hypothesis

What are the risk factors for experiencing a negative wealth shock in mid-to-later life?

Conclusion

Changes in marital status and mental health may indicate future negative wealth shocks for retired adults.

Supporting Evidence

  • Separation from or loss of a spouse/partner increased the odds of a negative wealth shock (AOR= 1.44).
  • Retirees who became depressed had higher odds of a negative wealth shock (AOR= 1.23).

Takeaway

If older people lose their spouse or become very sad, they might lose a lot of money quickly.

Methodology

The study used multivariable logistic mixed effects models to analyze data from the US Health and Retirement Study.

Limitations

Further investigation is required to fully understand the implications of the findings.

Participant Demographics

Respondents aged 55 and older in the US.

Statistical Information

Confidence Interval

95% CI: 1.24, 1.67

Digital Object Identifier (DOI)

10.1093/geroni/igae098.1273

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