Older adults who experienced financial insecurity were more likely to develop lower memory function and accelerated memory decline compared to those who did not, according to a March study published in the American Journal of Epidemiology.
Researchers examined 7,676 adults older than 50 years included in the Health and Retirement Study (HRS) who completed the study’s self-administered psychosocial and lifestyle questionnaire (SAQ) in either 2010 and 2014, or 2012 and 2016. They created an index of poor financial well-being at exposure baseline and four-year follow-up from eight existing HRS survey items reflecting participants’ household finances and perceived financial circumstances. Participants were sorted into three categories: “average financial well-being,” “significant improvement in financial well-being” and “significant worsening of financial well-being,”
The results showed that over a four year period, 11.5% participants experienced a significant improvement in scores while 7.3% a significant worsening. Additionally, each 1-point increase (worsening) in average financial well-being was associated with lower memory function in 2016 and accelerated memory decline from 2016-2020. These associations were especially significant for participants whose financial well-being score significantly worsened over 4 years.
Based on the results of the study, the authors suggest that income supports in later life may slow cognitive decline and reduce dementia risk. They note that a reduced capacity for financial recovery later in life can contribute to these hardships.
“Altogether, our findings support the hypothesis that financial hardship, particularly worsening financial well-being in midlife and older age, negatively impacts brain health,” authors said. “Future studies should investigate the potential later-life cognitive benefits of interventions that improve older adults’ financial circumstances or buffer the impact of later-life financial changes. This includes exploring earlier-life interventions that enhance financial security before retirement, as well as those providing supplemental income support during later-life financial shifts.”