Trust Advisor - Elderly households hold a large percentage of assets in the U.S., which means that their financial decisions are especially important to the economy.
Numerous cognitive studies over the years have shown that decision-making ability declines with old age and that this can have an effect on important financial decisions. Texas Tech University (TTU) recently published a study on this topic and found that after age 60, one's ability to make smart financial decisions begins to suffer. While peak financial decision-making ability occurs at age 50 according to this study and many others, from age 60 onwards, a gradual decline begins and decision-making quality is significantly impacted by one's '80s and '90s.
Read the story here.