Consequences of Financial Strain for Psychological Distress among Older Adults: Examining the Explanatory Role of Multiple Components of the Self-Concept

Abstract

Guided by a sociological perspective on mental health encapsulated in a stress process perspective, the authors examine the role of mastery, self-esteem, and mattering in explaining how financial strain is associated with symptoms of depression, anxiety, and anger in older adults. Analyses focus on the Caregiving, Aging, and Financial Experiences study, a national longitudinal survey of Canadian older adults conducted in the fall of 2021 and 2022 ( n = 3,977). Financial strain is associated with greater psychological distress across outcomes, but most strongly with anxiety. Although financial strain depletes mastery, self-esteem, and mattering, only mastery and self-esteem act as mediators between financial strain and psychological distress, with mastery predominant. This research suggests that a sociological perspective on stress and mental health can inform efforts to enhance the well-being of an aging population by identifying how reinforcements to the self-concept may truncate the consequences of financial challenges for psychological distress in later life.