Financial Burden Among Older Adults: A Preliminary Look at the Impact of Gender and Widowhood Using National Data

BACKGROUND: Economic security is linked to well-being and yet U.S. families have the highest average end-of-life care costs among developed countries. Prior research suggests widowed persons, and in particular widowed women, are at risk for financial insecurity and burden. However, our understanding of the various factors that contribute to financial burden among older adults remains incomplete – and few studies have used population-based data to examine this topic, which is highly relevant for social policy and social work practice.  

PURPOSE: To identify predictors of financial burden and evaluate the relationship between widowhood and gender on financial outcomes.

METHODS: Data were drawn from the 2006 and 2008 waves of the Health and Retirement Study (HRS) and the Psychosocial Survey Supplement. The HRS is a longitudinal, nationally representative study of the health and economic status of older adults 50+ in the U.S.  The total sample included 16,068 older adults (8,568 cases from 2006; 7,500 from 2008) with an overall response rate of 87%. Demographic variables such as age, race/ethnicity, marital status (including widowhood), self-rated health, and education were entered as predictors. Financial stress was measured using an item inquiring about financial satisfaction, and financial strain was operationalized using an item identifying difficulties paying monthly bills. Total household assets were also included in the model. Univariate, t-tests, chi-squared analyses and multiple regression models were conducted to examine three research questions: 1) What demographic factors are associated with assets and financial stress/strain?; 2) Do gender differences exist between older adults' financial stress/strain?; and 3) how does gender differ on measures of financial stress/strain among widows?

RESULTS:  Preliminary results indicate that age, race, ethnicity, marital status, education, and self-rated health are significantly associated with assets (p<.001).  White, non-Hispanic, married, and more educated respondents had more assets than, non-married, less educated respondents of color.  Relationships between age, race, marital status, education, self-rated health and financial satisfaction were significant (p<.001). Respondents of color scored lower on financial satisfaction than Caucasians. Married, more educated, healthier respondents had higher levels of financial satisfaction. Older, male, Caucasian, married, more educated and healthier respondents had fewer difficulties paying monthly bills. The bivariate analysis indicated financial strain and gender were statistically significant, but the association disappeared when other demographic characteristics were entered into the model. Finally, gender differences were observed on all financial outcomes among widowed persons (p<.01). Males reported slightly higher (.2 points) financial satisfaction, and had more total assets than females (mean difference $220,054). Also, females indicated greater difficulty paying bills (M=2.06) than males (M=1.79).

IMPLICATIONS: The results of this study indicate widowhood has a strong influence on economic security. Gender differences in life expectancy and the fact that women tend to marry younger than men may explain why there are substantially more female than male widows. Further, traditional gender roles and disparities may increase the risk for financial strain among female widows.  Implications for social work research and practice are discussed.