Robert O. Herrmann Outstanding Dissertation Award Winner
Financial well-being in later life is shaped by far more than income and assets. This award-winning dissertation applies Engel's (1977) Biopsychosocial (BPS) Model to financial well-being for the first time, examining how biological, psychological, and sociological factors interact to predict financial outcomes among older adults. Using five waves (2010–2018) of the Health and Retirement Study (HRS) and structural equation modeling with over 35,000 respondents, the study operationalizes physical health, mental health, and social connection as higher-order latent constructs and tests their direct, indirect, and combined effects on a multidimensional measure of financial well-being. Results reveal that the integrated BPS model explains up to 99% of variance in the financial well-being construct, with mental health emerging as the dominant predictor. Physical health exerts positive but variable direct effects and meaningful indirect effects through psychological pathways, while social connection shows a surprising negative direct association, suggesting that maintaining social ties may carry financial costs even as those ties bolster mental health. Findings challenge purely economic models of financial wellness and offer actionable intervention points for financial planners, policymakers, and health professionals working with aging populations.
