Assets and Life Satisfaction Patterns Among Korean Older Adults: Latent Class Analysis

This study aims to examine the association of assets with life satisfaction patterns among Korean older adults aged 50 and above. This study used the first two panel data sets (2005 and 2007) from the Korean Retirement and Income Study, which collected information from a nationally representative sample. Key independent variables include financial assets, real assets, and debts. This study classifies overall patterns of life satisfaction using seven multi-dimensional items via Latent Class Analysis. Multinomial regression models were used to determine factors related to estimated life satisfaction patterns after the data were adjusted by weighting and multiple imputation. This study found three classes of life satisfaction at both waves: low, moderate, and high. During the 2-year study period, significant portions of older adults moved upward (23%) and downward (22%) in their life satisfaction patterns. Consistent with the asset effect theory, this study found that assets and debts are significantly associated with life satisfaction patterns and longitudinal changes in these patterns. The study findings suggest that older adults' life satisfaction can be maintained or promoted through economic security. Financial planning programs combined with asset accumulation may help older adults to achieve economic security and associated life satisfaction.