We all know that our cognitive abilities tend to decline in our elder years (actually, age 60 on). But did you know we also tend to become overconfident in our financial knowledge and ability to make financial decisions at the same time? Does your retirement plan include steps to deal with this?
Courtesy of researchers at the University of Missouri and Texas Tech University:
Older Adults Have "Toxic Combination" of Lower Financial Literacy, Higher Self-Confidence
COLUMBIA, Mo. – Previous studies have shown that as humans age, cognitive declines are inevitable. Now, a recent study by researchers at the University of Missouri and Texas Tech University has confirmed that this cognitive decline extends into financial literacy. The researchers also found that older individuals retain a strong sense of self-confidence, which could add to the problem, leading to significant mistakes when making financial decisions.