Retirees Remain Confident In Financial Know-How As Cognition Declines

A new study shows that retirees remain confident that they can manage their finances even as numeracy and financial knowledge decline with age

One of the less studied impacts of the transition from defined benefit retirement plans and more complicated plans, such as a 401(k), is that it requires people either to make sound financial judgments as they age or to know when to reach out for help. But most people are confident that they can continue managing their own affairs even after significant cognitive impairment.

“Declining cognition has a noticeable adverse effect on financial literacy, but not on individuals’ confidence in managing their finances. Perhaps not surprisingly then, more than half of those experiencing a significant cognitive decline retain...