Associations Between Social Network Relationships, Cognitive Functioning, and Financial Exploitation

TL;DR

Having children and friends in one's social network is linked to a lower risk of financial exploitation among older adults, especially when cognitive function is normal.

Contribution

This study is the first to comprehensively examine how social network composition and cognitive functioning interact to influence financial exploitation in older adults.

Findings

The presence of children and friends in social networks is associated with a reduced likelihood of financial exploitation.

Friends in the network protect against financial exploitation only for those with average or above average cognition.

Family members may be less involved in financial decisions when cognitive function is intact.

Abstract

Financial exploitation (FE) of older adults usually involves a social interaction between the older adult and the exploiter. However, few studies have comprehensively examined social network compositions of older adults who experienced FE. In this study utilizing data from the Survey of Health, Ageing, and Retirement in Europe and Israel (SHARE) Wave 8, we examined whether social relationships, cognitive functioning, and their interactions, are associated with FE in a nationally representative sample of Israeli older adults. Participants (N = 704; M age=71.90, SD = 8.08, Range=53-103) self-reported whether or not they experienced FE over the past 12 months. They also completed social network and cognitive assessments. A global composite score of cognition was calculated based on scores across four cognitive tests. A logistic regression model regressed FE on the presence/absence of children, spouses, other family, and friends in networks, global cognition, and covariates. Interactions between global cognition and relationship types were also tested. The results demonstrated that the presence of children and friends in one’s close network were associated with a lower likelihood of experiencing FE (Children: OR = 0.57, p = 0.011; Friends: OR = 0.30, p < 0.001). Interactions revealed that the association of having friends in the network with FE was significant for those with average or above average global cognition, but not for those with below average global cognition. Findings suggest that friends may play a critical role in protecting against FE when cognition is intact, possibly because family members have less involvement in financial decisions in such circumstances.