Our financial decision-making abilities peak in our 50s and can decline pretty rapidly after age 70, researchers tell us. That’s how otherwise smart older people fall for sweepstakes frauds, Nigerian investment schemes and the grandparent scam, where con artists pretend to be grandchildren in a financial jam.
But few people want to hear that they’re not as sharp as they used to be. Many won’t recognize the rising risk of losing hard-earned life savings as they age, says financial literacy expert Lewis Mandell, author of “What to Do When I Get Stupid: A Radically Safe Approach to a Difficult Financial Era.”
“As our ability to make sound financial decisions decreases with age, our self-confidence in this area actually increases,” Mandell says.
In my latest for the Associated Press, what adult children can do to protect the finances of their parents.