The Effects of Multidimensional Poverty on Life Satisfaction Among Older Adults in Hong Kong

Abstract

Poverty indicators such as income-based poverty, material deprivation, asset-based poverty, and expenditure-based poverty each carries an aspect of economic deprivation. This current study examined and compared the unique effects of each poverty dimension on life satisfaction during old age. We measured four poverty indicators—life satisfaction, social resources, physical health, and mental well-being—in a three-wave sample of older Hong Kong adults ( N = 563). Panel data were fitted to a structural model that involved the constraints of the path coefficients (e.g., effects of poverty indicators on life satisfaction). The model results indicate that while material deprivation and asset-based poverty reduce life satisfaction, income-based poverty and expenditure-based poverty do not significantly shape life satisfaction. Based on these findings, we suggest implementing future-oriented interventions into policy agendas to promote current working adults’ financial preparation for retirement to reduce their risk of falling into asset-based poverty and thus material deprivation after retirement.