Financial well-being of the older adult Brazilians

Background and objective

The objective of this study is to identify the perceived financial well-being of older adult Brazilians. Additionally, it aims to evaluate whether this perception differs according to socioeconomic and demographic profiles. As far as is known, this is the first study to assess the financial well-being of the older adult in a representative sample of cases.

Materials and methods

A survey was conducted with 1129 Brazilians aged 60 or older. Perceived financial well-being was assessed using a set of 23 items distributed across four dimensions: financial security, financial tranquility, financial freedom, and satisfaction with financial management. The analysis techniques included descriptive statistics, chi-square tests, and regression analysis.

Results

The results indicate that most older adult exhibited high levels of financial well-being. A significant portion of the older adult (40%) still show shallow levels of financial well-being. When analyzing the dimensions that form financial well-being, it was found that although the older adults are mostly satisfied with how they manage their resources, few still feel financially secure, especially regarding their future financial capacity. It is also noteworthy that despite good results for financial freedom, there is still a significant portion of the older adult for whom this freedom mainly refers to satisfying day-to-day consumption needs, but is rarely enough to support larger financial expenditures such as a vacation trip. The worst levels were identified among those from lower social classes, non-whites, those with lower levels of education, and those without their own home.

Conclusions

The government, the financial system, and society need to unite to prevent financial digitalization, the lack of financial preparation for retirement, and changes in social security systems from negatively impacting the financial well-being of the older adult.