Does the beginning and the end of income poverty affect psychosocial factors among middle-aged and older adults? Findings based on nationally representative longitudinal data.

Objectives: The objective of this study was to determine whether the onset and the end of income poverty were associated with psychosocial factors (depressive symptoms, optimism, loneliness, social isolation, and subjective well-being).Method: For this study, nationally representative longitudinal data were drawn from the German Ageing Survey (wave 5 and wave 6 with n = 8534 in the analytical sample), covering community-dwelling individuals 40 years and over. Widely used and well-established measures were used to quantify psychosocial factors. Asymmetric linear fixed effects (FE) regressions were used.
Results: Conventional linear FE regressions showed that changes in income poverty were associated with changes in life satisfaction (β = -0.11, p < .05), changes in positive affect (β = -0.06, p < 0.05), changes in social isolation (β = 0.10, p < 0.05) and changes in optimism (β = -0.06, p < 0.05). Asymmetric linear FE regressions showed that the beginning of income poverty was associated with increases in social isolation (β = 0.14, p < 0.05) and decreases in optimism (β = -0.08, p < 0.05), whereas the end of income poverty was associated with increases in life satisfaction (β = 0.11, p < 0.05).
Conclusion: Findings indicate that the onset and the end of income poverty can affect psychosocial factors. More broadly, our findings suggest that upcoming studies should disentangle the consequences of income poverty (distinguishing between the start and the end of income poverty). This has important practical consequences. When individuals fall into poverty, strategies to avoid social isolation and the loss of optimism seems to be important. Furthermore, approaches to leave income poverty may help to rise life satisfaction.