Risk Taking and Financial Decision Making in Older Adults
Given that many decisions (such as choosing a stock in which to invest) involve high level cognitive processing, performance deficits in older adults may result from cognitive decline, but affective influences might also play a role. A study of performance on a dynamic investment game in younger and older adults reveals that older adults are not impaired on single trial choices, but are less able to explicitly identify optimal assets at the end of a block. However, neither younger nor older adults show a significant tendency toward a higher ratio of risk-seeking or risk-aversion mistakes.