Perceived financial freedom among older adults: Relationships with financial preparation for retirement and risky indebtedness

Kelmara Mendes Vieira; Silvia Amélia Mendonça Flores; Camila de Aguiar dos Santos; Taiane Keila Matheis; Catarina Cláudia Ferreira Frade; Breno Augusto Diniz Pereira; Kelmara Mendes Vieira; Silvia Amélia Mendonça Flores; Camila de Aguiar dos Santos; Taiane Keila Matheis; Catarina Cláudia Ferreira Frade; Breno Augusto Diniz Pereira

doi:10.3934/NAR.2026008

National Accounting Review

2026, Volume 8, Issue 2: 163-185. doi: 10.3934/NAR.2026008

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Research article

Perceived financial freedom among older adults: Relationships with financial preparation for retirement and risky indebtedness

1.
Postgraduate Program in Management of Public Organizations, Federal University of Santa Maria, Santa Maria, Brazil
2.
Graduate Program in Administration, Federal University of Pampa, Santana do Livramento, Brazil
3.
Graduate Program in Administration and Accounting Sciences, Federal University of Santa Maria, Santa Maria, Brazil
4.
Faculty of Economics, University of Coimbra, Coimbra, Portugal

Received: 22 August 2025 Revised: 09 February 2026 Accepted: 24 March 2026 Published: 16 April 2026
JEL Codes: C83, D14.I30, J14

Population aging has intensified concerns regarding financial vulnerability and well-being in later life, particularly in emerging economies where pension systems face structural constraints and older adults increasingly rely on individual financial decision-making to maintain autonomy and quality of life. In this context, perceived financial freedom represents a key dimension of financial well-being, reflecting the capacity to make autonomous financial decisions and sustain living standards. This study aimed to examine perceived financial freedom among older adults and analyze its relationships with financial preparation for retirement and risky indebtedness behavior. A survey was conducted with 1010 Brazilian older adults. Descriptive statistics, structural equation modeling (SEM), and multigroup invariance analysis were employed. Although the study draws on a large sample, the use of a non-probabilistic sampling strategy limits its representativeness and constrains the generalizability of its findings. The results indicate that most participants reported a high or very high level of perceived financial freedom, while financial preparation for retirement remains limited. All proposed hypotheses were supported. The structural model revealed a positive relationship between financial preparation for retirement and perceived financial freedom, and negative relationships between risky indebtedness behavior and both perceived financial freedom and retirement preparation. The estimations further demonstrated that the proposed framework is invariant across gender, race, education, and income groups. In Brazil, as in other developing economies facing pension system pressures, these findings highlight the relevance of policies and educational initiatives aimed at strengthening retirement preparation, financial planning, and responsible credit management to promote financial freedom in later life.
- elderly,
- financial freedom,
- retirement planning,
- indebtedness,
- behavioral finance
Citation: Kelmara Mendes Vieira, Silvia Amélia Mendonça Flores, Camila de Aguiar dos Santos, Taiane Keila Matheis, Catarina Cláudia Ferreira Frade, Breno Augusto Diniz Pereira. Perceived financial freedom among older adults: Relationships with financial preparation for retirement and risky indebtedness[J]. National Accounting Review, 2026, 8(2): 163-185. doi: 10.3934/NAR.2026008

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Abstract

Population aging has intensified concerns regarding financial vulnerability and well-being in later life, particularly in emerging economies where pension systems face structural constraints and older adults increasingly rely on individual financial decision-making to maintain autonomy and quality of life. In this context, perceived financial freedom represents a key dimension of financial well-being, reflecting the capacity to make autonomous financial decisions and sustain living standards. This study aimed to examine perceived financial freedom among older adults and analyze its relationships with financial preparation for retirement and risky indebtedness behavior. A survey was conducted with 1010 Brazilian older adults. Descriptive statistics, structural equation modeling (SEM), and multigroup invariance analysis were employed. Although the study draws on a large sample, the use of a non-probabilistic sampling strategy limits its representativeness and constrains the generalizability of its findings. The results indicate that most participants reported a high or very high level of perceived financial freedom, while financial preparation for retirement remains limited. All proposed hypotheses were supported. The structural model revealed a positive relationship between financial preparation for retirement and perceived financial freedom, and negative relationships between risky indebtedness behavior and both perceived financial freedom and retirement preparation. The estimations further demonstrated that the proposed framework is invariant across gender, race, education, and income groups. In Brazil, as in other developing economies facing pension system pressures, these findings highlight the relevance of policies and educational initiatives aimed at strengthening retirement preparation, financial planning, and responsible credit management to promote financial freedom in later life.

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