Early-life financial hardship has lasting effects on mental health and loneliness, and adult financial strain adds to this impact
The Impact of Socioeconomic Status Across the Life Course on Emotional Health in Later Adulthood
Health disparities between groups of different socioeconomic statuses (SES) are well-known and can be seen across various health outcomes, including emotional health. People with lower SES may experience several stressors, such as financial strain, that also magnify the impact of other negative life events. As a result, people with lower SES tend to have lower levels of emotional health in later adulthood. However, SES is not constant throughout the life-course, and the timing of economic disadvantage may influence the relationship between SES and emotional health.
This study examined how financial strain in childhood and adulthood may impact longitudinal changes in three aspects of late-life emotional health: depressive symptoms, anxiety, and loneliness. To explore this, data from three NEAR studies were used: Swedish Adoption/Twin Study of Aging (SATSA), Origins of Variance in the Oldest Old (OCTO-Twin), and Aging in Women and Men: A Longitudinal Study of Gender Differences in Health Behavior and Health among the Elderly (GENDER). The data comprised 1,596 adults aged 45-98.
Image source: Statens Offentliga Utredningar (SOU) 1955:8
Early-life financial hardship has lasting effects on mental health and loneliness, and adult financial strain adds to this impact
The findings showed that both childhood and adulthood financial situations affected emotional health after age 50. For depression and anxiety, these effects seemed to add to each other: the highest levels of depression and anxiety were found in the group with high levels of financial strain in both childhood and adulthood. The lowest levels were found in the group that had a stable financial situation in both childhood and adulthood.
Childhood conditions also impacted how mental health developed over time during later adulthood. Groups reporting high childhood financial strain demonstrated linear increases in anxiety from age 50 (the youngest age in the sample). In contrast, groups reporting low childhood financial strain showed no increases in anxiety prior to age 70. Thus, lower economic vulnerability in childhood can act as a buffer and postpone anxiety until later ages.
Loneliness remained stable up to age 70 for all groups, except those who experienced high financial strain in both childhood and adulthood. For the development of loneliness, periods of financial security could compensate for the negative effects of financial hardship. Financial stability in adulthood reduced the impact of high financial strain in childhood on loneliness in late adulthood. Similarly, financial stability in childhood reduced the impact of high financial strain in adulthood on loneliness in late adulthood.
“It was surprising to find a long-term impact of childhood on emotional health in late adulthood, even when mid-life financial strain was taken into account”, says Deborah Finkel, first author of the study. Possible explanations for the negative impact of financial vulnerability on emotional health can be linked to the long-term stress caused by financial difficulties. Chronic stress affects the brain and can lead to long-term changes in how we deal with emotions and setbacks. Financial stress can also affect access to social resources, such as support from family and friends, which can further reinforce feelings of loneliness and mental illness.
Deborah Finkel, first author of the study.
Publication:
Finkel D, Hyde M, Hasselgren C, Sacco L, Sindi S, Nilsen C. Both childhood and adult perceived financial strain impact age trajectories of change in emotional health in late adulthood. Aging & Mental Health. 2025 Aug;29(8):1497-1504.
This study is part of a research project funded by Forte and the Swedish Research Council: Patterns of stress across the life course and their role in mental health and loneliness in later life. Read more about the project here.
