1. Retired Older Adults’ Financial Resources and Life Satisfaction
Hyunsook Kang, Jennifer Newquist, Lisa Mize, Nancy Shepherd
Stephen F. Austin State University, School of Human Sciences
Conclusion
Older adults’ financial resources after their retirement was related to their life satisfaction in the current study. First, non-retired older adults reported higher score in spend money on all areas, but they spend money more only in health care, religious activity, and social relations. It is understandable that older adults who are retired has less regular income that they can use, but they have to focus on their current financial resources. In addition, non-retired older adults reported higher scores of life satisfaction than retired older adults. There are similar previous findings in which older adults happiness is related to older adults’ socioeconomic status, such as health and income (e.g., Antonucci, 1985; Fischer, 1982).
Although previous studies indicate that income is related to family and health care networks, the current findings indicate that income is associated with quality of the older adults’ life satisfaction.
Consistently, Antonucci (1985) and Fischer (1982) measured older adults’ life satisfaction in which older adults who had a higher income level reported a higher quality of social relationships, health care, and other life events.
Further research is needed to clarify demographic differences (e.g., ethnicity, education, income) and life satisfaction among older adults. In addition, research can identify resources (e.g., time), limitations and benefits of financial associated with older adults.
Introduction
Due to increased life expectancy, older adults are more likely to have a long period of life time in retirement (Pinquart & Schindler, 2007). According to Quadagno (2002), the majority of older adults are likely to be retired at the age of sixty five years old with diversity in individual resources (e.g., income, health, and family context). Given the growing life expectancy and increasing number of baby boomer (people born between 1946 and 1964) generation’s approach to retirement, it is necessary to study what influence it has and how to adjust to the retirement stage in later life.
According to Vierck and Hodges (2005), 90% of older adults in America receive Social Security benefits and 60% of older adults receive income from assets. 25% of older adults have a median income of $35,000 or more and another 25% of older adults have income under $10,000 a year. Additionally, older women are more likely to be poor than men. To build stable life after retirement, Lopata (1996) emphasized income and education, which offer potential ability to facilitate the utilization of opportunities for social contacts.
Indeed, income level may be essential for successful aging and adjusting in later life (Lopata, 1996). Similarly, in the study of Butler (2006), income is the positive predictors of older adults’ social networks, in which those who have higher income level reported better social networks. For example, there is empirical evidence that older adults who have more income level may more frequently participate in leisure and physical activities (Pinquart & Schindler, 2007).
Pinquart and Schindler (2007) conducted longitudinal survey across 37 years with 1456 retired adults to find the association between retirement and its influence on later life. Latent Growth Mixture Modeling (LGM) revealed that lower income levels may cause limitation on social networks and may reduce frequency of social activities after retirement. Similarly, Dorfman (1991) noted that income variable is important for social networks in that those who have a lower income are less likely to engage in social and leisure activities.
Therefore, it is understandable that older adults who have higher income may have successful aging process and healthier. In sum, prior research indicates that stable financial resource in after retirement is meaningful to the lives of older adults. It has important benefits, such reducing the effects of stressful life events. However, less is known about how much older adults’ financial resource affect their life satisfaction after retirement.
Method
Sample: Secondary data analysis derived from AARP telephone survey (Montenegro, 2013).
Age: adults age (n=3005)
Sex: (1203 male, 1802 female)
Measures:
The income was participants’ perceived income level. The mean score was 1.2 (SD= 3.2).
Relative income was assessed with a Likert type scale (1= “far below average”, 2= “below average”, 3= “average”, 4=“above average”, 5=“far above average”).
For example, “What is your house hold income relative to American families.” The income was participants’ perceived income level. The mean score was 1.2 (SD= 3.2).
A dummy variable of retirement status was coded (0= “no, 1=”yes”).
Results
To address the research question, a MANOVA was conducted. The MANOVA revealed a significant main effect; there were life satisfaction differences between the two groups.
Univariate follow-up tests revealed that the older adults who do not retired group report higher life satisfaction than older adults who are already retired. Thus, there is a group differences in financial status and life satisfaction in later life.
References
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Table 1. Mean Differences on Life Satisfaction Between Two Groups.
Activities
Retired Group
Non-Retired Group
F value
Spend money on Shopping
1.65
1.88
4.44*
Spend money on Health Care
1.89
1.84
.05***
Spend money on Hobbies
2.16
2.50
2.80**
Spend money on Travel
2.57
12.85**
Spend money on Education
1.50
1.54
13.18**
Spend money on Socialization
2.19
2.98*
Spend money on Religious Activity
2.69
1.91
7.23**
Spend money on Family Life
2.64
2.45
.03*
Research Question
Thus, the present study addressed the following research question:
Are there group differences between retired older adults and older adults who are still in the job market in life satisfaction?
Note. *p < .05, ** p < .01