Worse financial well-being in midlife and older age, especially when it declines over time, is linked to lower memory scores and faster cognitive decline, according to a study released on Mar. 18 by Columbia University Mailman School of Public Health. The research found that people experiencing significant financial deterioration showed memory decline equivalent to about five additional months of aging per year.
The findings are important because they suggest that economic factors may play a role in how quickly cognitive abilities decline as people age. This could have implications for public health policies aimed at supporting older adults.
The study is among the first to examine the cognitive consequences of poor financial well-being. Researchers analyzed data from 7,676 adults aged 50 and older who participated in the Health and Retirement Study between 2010 and 2020. They looked at both average financial status and changes in financial well-being over four years, then measured how these related to memory performance during the following four years.
To assess financial well-being, researchers developed an eight-item index based on existing survey data. This index included measures of psychosocial strain—such as dissatisfaction with finances and stress—as well as material hardship like difficulty paying bills or having low income. The index was validated against the Consumer Financial Protection Bureau's Financial Well-Being Scale.
"Financial well-being is an emerging economic determinant of health that may be associated with cognitive aging," said Adina Zeki Al Hazzouri, PhD associate professor of Epidemiology at Columbia Mailman School of Public Health (MSPH), and senior author. "Prolonged financial strain may overwhelm mental bandwidth and contribute to negative cognitive outcomes."
Katrina Kezios, PhD, assistant professor of Epidemiology at Boston University School of Public Health and first author, said: "Our index was designed to capture poor financial well-being as a multidimensional exposure encompassing both a lack of psychosocial resources—for example, perceived financial dissatisfaction and strain—alongside material constraints such as difficulty meeting basic needs and low income. We validated our index against the Consumer Financial Protection Bureau's Financial Well-Being scale, which was first introduced in the HRS in 2020."
The authors noted that older adults may be particularly vulnerable due to limited options for recovering financially and reliance on fixed incomes like Social Security or pensions. They suggested that chronic stress from financial strain could harm cognitive health by reducing access to healthcare or nutrition and limiting social engagement.
"Our findings also point to potential policy implications," observed Zeki Al Hazzouri. "Income supports and financial assistance in later life may help protect cognitive health and reduce dementia risk, particularly for those experiencing financial decline."
