Financial stress and mental well-being among older adults: an extended conceptual framework of financial vulnerability, self-efficacy and social support

Purpose Population ageing has emerged as an important social and economic phenomenon, creating increasing challenges for the financial and psychological well-being of older adults. Although ageing is generally associated with retirement, declining earning capacity and increasing healthcare requirements, the financial consequences of these changes are not experienced uniformly. Existing literature has examined financial stress, healthcare expenditure, financial dependence, social support and mental well-being among older adults independently; however, the theoretical mechanisms explaining why some older adults experience stronger psychological consequences of financial stress than others remain under-theorised. This study aims to propose an integrated framework outlining various factors of financial stress and mental well being of older adults. Design/methodology/approach This conceptual paper combines Life Course Theory, Hobfoll theory, the Stress Process Model, Social Cognitive Theory and conservation of resources (COR) theory to propose a moderated-mediation model connecting financial vulnerability with financial stress and mental well-being with psychological and protective resources as moderators. Findings The proposed framework incorporates healthcare expenditure, retirement-income insecurity, financial dependence, debt and digital financial challenges as core sources of financial vulnerability. Financial self-efficacy and perceived financial control represent psychological factors, while social support, social engagement and financial resilience function as protective factors, collectively moderating the relationship between financial stress and mental well-being. Practical implications The framework offers actionable insights for policymakers, financial institutions, healthcare providers, families and organizations involved in elderly welfare to design targeted interventions, supportive financial products and social support systems that foster financial resilience and mental well-being in older populations. Originality/value The paper contributes to the ageing and financial well-being literature by integrating financial, psychological and social dimensions within a single comprehensive conceptual framework, laying a robust foundation for future empirical research. Furthermore, to provide a comprehensive understanding of how the emotional well-being of older adults is influenced by financial stability, this study will develop a clear and integrated framework.