Decline in cognitive ability leads to fear of upfront costs
In 2014, 75.4 million Baby Boomers lived in the United States, according to Pew Research. As this generation continues to age, dialogue will increase on how to manage concerns associated with aging, such as the decline in cognitive ability and retirement decisions. Now, a researcher at the University of Missouri has found that older individuals with lower cognitive abilities are susceptible to behavioral biases, such as being adverse to upfront costs. Michael Guillemette, an assistant professor of personal financial planning in the University of Missouri's College of Human Environmental Sciences, says that risk aversion, along with lower cognitive ability among older Americans, might explain the lack of demand for certain retirement savings products.