Older People More Irrational and Inconsistent

[SifuPhil]

We've always suspected it - now we have proof. Sort of.

With age comes wisdom, or so the adage goes, but a new study has found that older adults are more likely to make poor financial decisions and irrational choices than any other age group.


The study, published on Tuesday in the journal Proceedings of the National Academy of Sciences, also found that decision-making abilities, motor skills and memory might also decline with age.


Researchers at the University of Sydney, New York University and Yale’s School of Medicine asked 135 participants between 21 to 90 years of age to make a series of financial decisions, choosing between options that carried different levels of risk and reward, ranging from HK$55 to HK$900. Participants were put into age categories such as young (aged 21 to 25), midlife (aged 30 to 50) and older (over 65 years old).


"Older people were much more likely to be inconsistent in their decisions," said the study’s author, Dr. Agnieszka Tymula ...

Read more in the South China Morning Post

 

[SifuPhil]

I totally agree with you, T - I think it's just another example of poor experimental design and focus on the wrong elements.

The stock market to me is equivalent to a casino - I know enough to stay away from both, because I know the house always wins. It's a rigged game. Now maybe if I took the time to learn all the strategies - of cards, dice or short-calls - then I might change my tune. But both worlds just leave me with a bad taste in my mouth, because I've never liked the concept of leaving my fate up to anyone or anything but me.

 

[Diwundrin]

I think it's a bit 'skewed' too as experiments go. I've been numerically dyslexic my whole life, age has nothing to do with it.

 

[GDAD]

Could not open Nation acadamy of science. But from what I read of the morning Post,it really needed more information.
Being offered HK$55 dollars I would inmmediately think OH that's only about $7.00 australian, so the value to me would
be to take the 7 bucks say to the wife"want a cup of Coffee?"....Anything that's free that's me!!!!

 

[WhatInThe]

I think a lot of older people simply show their true colors when they get old. And that includes a mentality that everything they needed to know they learned early in life. But when they are not forced to work or think they start to loose the ability to learn, progress and adapt. The willingness to learn should be regarded as a good quality trait even for seniors. But many seniors even when they were young always tried to game the system wether it be work rules or short cuts to what ever. The hunt for easy out does not always equate to actually learning. It perpetuates laziness. It also shows a level of ignorance.

 

[rkunsaw]

Researchers at the University of Sydney, New York University and Yale’s School of Medicine asked 135 participants between 21 to 90 years of age to make a series of financial decisions, choosing between options that carried different levels of risk and reward, ranging from HK$55 to HK$900. Participants were put into age categories such as young (aged 21 to 25), midlife (aged 30 to 50) and older (over 65 years old).


"Older people were much more likely to be inconsistent in their decisions," said the study’s author, Dr. Agnieszka Tymula ...

I wonder where the young folks found money to invest. Most that age don't have or want a job. The middle aged ones mostly aren't thinking about retirement.

The older people have been around and seen enough to not be very trustful so are more careful with their money.

 

[WhatInThe]

I wonder where the young folks found money to invest. Most that age don't have or want a job. The middle aged ones mostly aren't thinking about retirement.

The older people have been around and seen enough to not be very trustful so are more careful with their money.

That sounds about right. I think experience and knowledge level also play a part. I know plenty of young people thinking like seniors. Maybe they were told be careful with your money. Or there money skill was taught by seniors.

I much more willing to try things financially in my old simply because I understand them much better now than I was younger. I don't have to be entertained when I am seeking knowledge like a young kid and have seen enough real world examples to relate to financial strategies.