Changes in income and wealth by race, age, and gender among U.S. older adults: does change in sense of purpose in life matter?

BACKGROUND AND OBJECTIVES: We examined racial/ethnic, age, and gender differences in changes in total household income and wealth among U.S. older adults and further evaluated whether change in sense of purpose in life (SPIL) moderates these differences.

RESEARCH DESIGN AND METHODS: Data were from the 2012-2018 waves of the Health and Retirement Study (N = 7,505). We estimated multivariate ordinary least squares regression models with interaction terms to evaluate the moderation effects of changes in SPIL on the differences in changes in income and wealth, adjusting for health and sociodemographic characteristics.

RESULTS: Differences in household income and wealth persist, varying across race/ethnicity, age, and gender groups. Non-Hispanic Black, Asian/other, and Hispanic older adults, as well as women, had significantly lower household income and wealth. Multiple moderation analyses demonstrated that changes in SPIL moderated racial/ethnic and gender differences in income, functioning either as a buffer or an amplifier but had no effect on wealth. Specifically, increased SPIL was protective against lower income among women and Hispanic older adults. However, its beneficial effect was significantly attenuated among non-Hispanic Asian/other older adults, suggesting the psychological benefits of SPIL may not uniformly impact financial outcomes across racial/ethnic groups in later life.

DISCUSSION AND IMPLICATIONS: Our findings highlight the need to consider cultural contexts in psychosocial influences on late-life financial well-being through a life-course perspective and to develop culturally informed strategies to reduce financial inequities in aging populations. Our findings suggest promoting SPIL may bolster financial resilience, particularly among Hispanic older adults and women.