Aging and Financial Decision Making

This study examines how cognitive changes associated with aging impact the financial decision making capability of older Americans. We find that a decrease in cognition is associated with a decrease in financial literacy. Decreases in episodic memory and visuospatial ability are associated with a decrease in numeracy, and a decrease in semantic memory is associated with a decrease in financial knowledge. A decrease in cognition also predicts a drop in self-confidence in general, but importantly, it is not associated with a drop in confidence in managing one's own finances. Participants experiencing decreases in cognition do show an increased likelihood of getting help with financial decisions; however, many participants experiencing significant drops in cognition still do not get help.

• 저널Management Science · 61(11) · 2603–2610
• 토픽Financial Literacy, Pension, Retirement Analysis · Accounting
• DOI10.1287/mnsc.2014.2010
• 저자Keith Jacks Gamble, Patricia A. Boyle, Lei Yu, David A. Bennett