The influence of negative wealth shock on depressive symptoms and major depressive episode among older adults.

Year of Publication
2025
Author
Journal
SSM Popul Health
Volume
32
Number of Pages
101871
ISSN Number
2352-8273
Abstract

A negative wealth shock (i.e., a sudden large loss in wealth) represents a stressful life event that threatens older adults' mental health. This study examines whether a negative wealth shock is associated with both 12-month major depressive episodes and 1-week depressive symptoms over time among older adults, compared to positive wealth without a shock. This study also examines whether baseline net worth moderates the association between a negative wealth shock and depressive symptoms. The study utilized a national sample of 15,660 individuals from six waves of the Health and Retirement Study (2008-2018). We estimated mixed-effects models based on respondents' self-reported wealth and depressive symptoms. A negative wealth shock was defined as a loss of 75 % in total wealth compared to the previous wave. We applied inverse probability weighting to account for potential selection bias. A negative wealth shock was associated with 1.30 times higher odds of having major depressive episodes compared to positive wealth. Both a negative wealth shock (incidence rate ratio [IRR] = 1.30, 95 % Confidence Interval [CI]: 1.06-1.60) and baseline negative wealth (IRR = 1.05, 95 % CI: 1.01-1.09) were associated with a higher rate of depressive symptoms compared to positive wealth. No interaction effects between baseline net worth and a negative wealth shock on depressive symptoms were observed. A negative wealth shock in mid-to-late life has detrimental effects on both 12-month and past-week depressive symptoms, providing implications for mental health programs for older adults at financial risk.

DOI
10.1016/j.ssmph.2025.101871
PMID
41142652
PMCID
PMC12552972
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