This research update explains the key findings of recent research on the mechanisms that link high inequality and low mental and physical health and social cohesion. The research found significant reductions in intelligent thought among people who thought they were likely to end up alone in life. Importantly, this decline in intelligent thought was found only in complex intellectual tasks such as effortful logic and reasoning – simple information processing was not affected – and the effects were specific to social exclusion; intellectual ability was not affected by expectations of non-social misfortunes such as accidents or injuries or by mood.