Older adults make decisions and take risks just like young people

Often, stereotypes can paint an inaccurate picture of people. A recent study challenges the stereotype of older adults being risk-averse and weak in decision making.

A study from SWPS University in Poland suggests that, contrary to popular belief, older people are often risk-takers, and can be rather resistant to manipulation.

Financial decisions of older adults

Poland’s population is noticeably growing older. According to 2023 data from Statistics Poland (GUS), citizens aged 65 and more numbered 7.5 million, making up over 20% of the total population.

This significant shift has vast implications, as it’s often the older adults who are tasked with crucial financial and healthcare decisions.

Decision-making by older adults

Historically, research into the decision-making abilities of older adults has been contradictory. Some studies have found older people to be risk-averse and prone to manipulation, whereas others contradict this view.

The study by SWPS University debunks common narratives around aging and decision-making. This research suggests that older adults should not be underestimated or overly shielded.

“Too often, older people are portrayed as defenseless and less capable of making correct decisions, which can lead to their infantilization or exclusion from important choices,” noted study co-author Dr. Maciej Kościelniak from the SWPS University’s Faculty of Psychology and Law in Poznań.

Older adults are risk takers

The research looked at how the approach of older adults to risky decision-making changes with age, focusing on their susceptibility to the “attraction effect,” otherwise known as the decoy effect or asymmetric dominance effect.

Two separate experiments were conducted for this study – an online survey involving 357 participants and a lab-based project with 173 participants.

The participants spanned three age groups – young adults (18-33 years), middle-aged adults (42-57 years), and older adults (65-80 years). All groups were balanced regarding educational background.

The results were unexpected. Older adults proved more likely to take risks than their younger counterparts. Also, both age groups exhibited an equal ability to resist manipulation related to the attraction effect.

Making mistakes, learning, and improving

Initially, older adults made more mistakes, particularly in scenarios with significant financial and social repercussions.

However, with practice and familiarity, they sharpened their decision-making skills. Although it took them longer, by the end of the trial, their performance was on par with that of the younger group.

This observation suggests that, while aging might slow down the processing of new information, it doesn’t curb the ability to make sound decisions, nor the resistance to manipulation.

“The discovery that learning ability is comparable between older and younger adults has profoundly influenced my view on cognitive functions in the aging process – it’s not simply a story of decline, but rather one of adaptation,” explained Maciej Kościelniak.

Shattering stereotypes

The study’s findings offer invaluable insight into the cognitive functioning of older adults. They indicate that the ability to make complex decisions in late adulthood is vastly underestimated, and that age-based stereotypes need a revision.

“Whether we’re talking about interactions with financial advisors, healthcare workers, or family members helping older people make decisions, our findings suggest that older adults often do not need protection from choices, but rather an opportunity and sufficient time to become familiar with new situations,” noted Maciej Kościelniak.

In conclusion, perhaps it’s time we reassess our views on aging and capability. After all, as this research indicates, there’s much more to our senior citizens than meets the eye.

Other stereotypes involving older adults

Older adults often face stereotypes that go beyond decision-making. For instance, they are frequently perceived as technologically inept.

While some may take longer to adapt to new devices, studies show that many older adults actively engage with technology, from smartphones to social media platforms. This adaptability demonstrates their willingness to learn and stay connected.

Another common misconception is that aging individuals lose their creativity. Contrary to this belief, research indicates that older adults often channel their life experiences into innovative problem-solving and artistic pursuits. Many renowned artists and writers have produced some of their best work later in life.

Older adults are also wrongly seen as socially isolated. While some experience loneliness, many maintain active social lives, often volunteering, mentoring younger generations, or participating in community activities. This engagement highlights their resilience and continued contribution to society.

The study is published in the journal Ageing and Society.

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