A new research has found that older adult's lifetime financial expertise and knowledge offsets their declining ability to information efficiently process when making financial decisions.
The research led by University Of California, Riverside explained that crystallized intelligence, which is gained through experience and accumulated knowledge, is more important than fluid intelligence i.e. the ability to think logically and process new information.
Previous research declared that fluid intelligence decreases with old age, a phenomenon known as cognitive decline.
Ye Li, an Assistant Professor at the UC Riverside School of Business Administration, said that the research shows that despite cognitive graying, older people's financial decision making may be more 'golden' than a slowing brain might otherwise suggest.
The research included that more people with accumulated wealth faces decisions about how quickly to consume their wealth and how to ensure it will last for their remaining years of life
The research report is published in the journal Proceedings of the National Academy of Sciences.
