Do All Savings Matter Equally? Saving Types and Emotional Well-Being Among Older Adults: Evidence from Panel Data

Abstract

Ill-being and mental ill-health have been on the rise in both Europe and the United States, especially among middle-aged and older adults. Although financial security has been shown to play a protective role in emotional well-being, little is known about the protective role of different types of family assets on mental health and well-being. Using longitudinal survey data from the Survey of Health, Aging and Retirement in Europe (SHARE) collected between 2004 and 2017, we examined the role of different types of family assets in emotional well-being and depression. A multivariate proportional hazard model with time-varying covariates was used. We found that family assets may play a significant protective role against depression, loneliness, and a decreased quality of life. Different forms of family assets may play diverse roles in protecting against the risks of ill-being and mental ill-health; however, their roles in increasing the chances of overcoming ill-being are less pronounced. Promotion of saving behaviours and proper financial management can help protect against adverse well-being and health outcomes in middle-aged and older adults.