Financial Decsion Making Peaks at 53
The journal article, Age of Reason, is full of interesting data on age-related cognitive decline and performance. The primary focus is on personal financial decision making. The authors found a “U shaped” relationship between age and the quality of financial decision making involving the cost of credit (e.g. home equity loans and credit cards). Peak performance happens around age 53.
Of special interest to cognitive designers is the section that looks at how various policies can help mitigate sub-optimal decision making. The article is worth a look by anyone designing to support consumer cognition in the use, purchase or understanding of financial products.
