A new study from The Ohio State University reveals a troubling link between financial insecurity and loneliness among older adults. This connection was especially noted during the COVID-19 pandemic. The research, published in PLOS One, found that seniors without emergency savings experienced higher levels of loneliness. This was especially true for those who had to rely on credit cards for unexpected expenses.
The study analyzed data from 7,149 adults aged 65 and older. Researchers used information from the COVID Impact Survey, conducted by the University of Chicago’s NORC research organization. Researchers surveyed participants three times between April and June 2020, tracking their experiences as lockdowns were enforced and later eased.
The findings showed that loneliness increased across all income levels. But, older adults who couldn’t cover a $400 emergency expense without borrowing money reported even greater feelings of isolation.
“Loneliness affected people across the financial spectrum,” said Cäzilia Loibl, co-author and professor at Ohio State’s College of Education and Human Ecology. “But those who relied on credit cards for emergencies were at significantly higher risk.”
WHY DOES FINANCIAL STRESS LEAD TO LONELINESS?
The study did not pinpoint an exact cause, but researchers have a theory.
“We believe older adults with financial burdens experience high stress. They may feel uncomfortable talking about money struggles with family or friends,” explained Madeleine Drost, co-author and research manager at Ohio State’s John Glenn College of Public Affairs.
“This may cause them to withdraw from social interactions and further isolate themselves.”
EMERGENCY SAVINGS HELPED REDUCE LONELINESS
Participants were asked how they would handle a $400 emergency expense:
- Those who could pay immediately reported lower levels of loneliness.
- Those who had to use credit cards and pay over time were more likely to feel isolated.
This aligns with past research showing that credit card debt leads to financial stress, which in turn worsens loneliness.
COVID-19 RESTRICTIONS HAD NO PROTECTIVE EFFECT
The study also examined whether following safety measures—such as mask-wearing, social distancing, and handwashing—impacted loneliness.
Results showed that income, savings, and wealth did not influence how these actions affected loneliness.
Additionally, researchers expected lifting lockdowns to help reduce loneliness, but found no significant improvement.
“The connection between financial stress and loneliness remained strong even after restrictions were lifted,” Loibl noted.
A LONG-TERM ISSUE: PREPARING FOR FUTURE CRISES
The research focused on COVID-19. The findings highlight a long-term issue. Financial insecurity will continue to exacerbate loneliness in seniors during future crises.
“Older adults without emergency savings are likely to struggle with isolation in any financial or public health crisis,” Drost emphasized.
Experts recommend financial and credit counseling to help seniors reduce debt. This advice also aims to build their emergency savings. It ensures that they remain socially connected in difficult times.
URGENT NEED FOR FINANCIAL AND SOCIAL SUPPORT
The findings underscore the importance of financial stability and mental health resources for older adults. Governments, social programs, and healthcare organizations must take proactive steps to help seniors maintain financial security and combat loneliness, especially in times of crisis.