 Objective and subjective memory: Impact on the financial behavior of older adults in the United StatesSu Hyun Shin The Journal of the Economics of Ageing, 2021, vol. 19, issue C Abstract: This study adds to the literature on the adverse effects of cognitive decline among older adults focusing on financial decisions. The article investigates the impact of objective and subjective memory on the financial decisions of older adults, such as asset holdings, allocation, and financial health. In general, older adults with higher objective memory have better financial outcomes. A higher objective memory leads to greater financial assets including stocks, cash-equivalent, individual retirement accounts, bonds, and thus total financial assets. It also leads to a smaller share in cash-equivalent. Older adults with better objective memory are more likely to have sufficient liquid assets to cover short-term expenses and they save enough to meet retirement adequacy. On the other hand, a higher subjective memory leads to fewer financial assets, retirement inadequacy, and insolvency. These findings have important implications for older adults who experience memory loss, and their families. Keywords: Memory; Asset holdings; Asset allocation; Financial health; Older adults; United States (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joecag:v:19:y:2021:i:c:s2212828x21000207 DOI: 10.1016/j.jeoa.2021.100327 Access Statistics for this article The Journal of the Economics of Ageing is currently edited by D.E. Bloom, A. Sousa-Poza and U. Sunde More articles in The Journal of the Economics of Ageing from Elsevier |
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