Financial well-being among the aged: a further elaboration

This study represents a further elaboration of the relative deprivation model proposed and tested by Liang and Fairchild (1979). A central assumption underlying this inquiry is that the link between economic status and perceived financial adequacy is mediated by subjective interpretations of the situation such as relative deprivation (Stouffer et al., 1948) and distributive justice (Homans, 1961). In addition, the effects of ascribed status variables such as age, sex, race, and religion on the social comparison process are assessed. Data for this investigation came from a survey of 252 older people in the Detroit area. Findings indicate that financial satisfaction is directly influenced by relative deprivation and distributive justice, while it is only indirectly affected by social status, labor force participation, and income. Race and age are the two ascribed statuses which have a significant impact on social comparison and perceived income adequacy. Implications of these results in terms of theory building and the design of income maintenance policies are also suggested.