Older adults and financial bequests

Area of Science:

• Gerontology
• Sociology
• Economics

Background:

• Financial bequest intentions are crucial for intergenerational wealth transfer.
• Understanding predictors of bequest expectations informs financial planning and policy.
• The Aging and Health Dynamics (AHEAD) dataset provides longitudinal insights into older adults' financial behaviors.

Purpose of the Study:

• To investigate predictors of older adults' perceived chances of leaving a financial bequest.
• To model the factors influencing financial bequest assessments in later life.
• To identify demographic, health, and psychological determinants of bequest intentions.

Main Methods:

• Utilized structural equation modeling (SEM) for complex variable relationships.
• Employed data from the Aging and Health Dynamics (AHEAD) study.
• Analyzed predictors of both high and low financial bequest assessments.

Main Results:

• Older age, high sense of control, and high socioeconomic status predicted higher bequest assessments.
• Race (White), physical health problems, and anticipated medical expenses predicted lower bequest assessments.
• Marital status and negative psychological functioning indirectly influenced bequest assessments via sense of control and medical expense concerns.

Conclusions:

• Financial bequest intentions are influenced by a combination of personal, financial, and health factors in older adults.
• Sense of control and concerns about medical expenses play significant roles in shaping bequest expectations.
• Interventions aimed at enhancing financial security and control may positively impact bequest planning among seniors.