Assessing Mediating Role of Financial Satisfaction in the Relationship Between Financial Literacy and Quality of Life Among Retired Older Adults

Objective: Quality of life in old age is of major importance because the world population is aging rapidly. Financial satisfaction is one of the important components of quality of life. So, the present study was aimed to determine the association between financial literacy and quality of life with mediating role of financial satisfaction among retired older adults residing in Qazvin, Iran. Method and Materials: This descriptive and cross-sectional study was conducted on 270 retired older adults in 2020. The samples were selected through stratified random sampling method from 8 retirement centers in Qazvin, Iran. The data were collected using demographic checklist, Quality of Life Scale (CASP-19), financial literacy, and financial satisfaction questionnaires. SEM structural equation modeling was used to determine the mediating role of financial satisfaction in the relationship between financial literacy and quality of life. Results: The mean age of older adults who participated in the study was 65.17 ± 4.57 years old. The majority of older participants in this study were male (166, 61.85%) and married (245, 90.7%). The financial literacy and the financial satisfaction of them were 51.60 and 35.11 from 100, respectively. Their quality of life was at a moderate level (63.89 from 100). The results of the regression model showed a significant association between financial literacy (p = 0.006, b = 0.17) and financial satisfaction (b = 0.25, p <0.001) with quality of life. The results also confirmed the mediating role of financial satisfaction in the association between financial literacy and quality of life (p =0.014). Conclusions: The results of the present study showed a significant and positive association between financial literacy and quality of life with mediating role of financial satisfaction among retired older adults. So, it’s suggested to policymakers for considering pre-retirement financial education in addressing older people’s lack of financial literacy for the retirement period.