Overconfidence and Financial Risk Tolerance in Older Age.

ABSTRACT:

Objectives

Excessive financial risk-taking in older age can have harmful consequences as opportunities to recover lost wealth are limited. Understanding financial risk-taking in older age is important for identifying vulnerabilities and developing interventions to empower aging investors to make wise financial choices. In this paper, we explore how overconfidence in financial knowledge affects financial risk-taking among older adults.

Methods

We examine this research question in older adults aged 58-101 (N = 1,242) using data from the Rush Memory and Aging Project (MAP).

Results

After controlling for demographics, overconfidence was associated with self-reported financial risk tolerance such that those who were more overconfident reported tolerating more financial ris

SUBMITTER: Frank CC 

PROVIDER: S-EPMC12067059 | biostudies-literature | 2025 May

REPOSITORIES: biostudies-literature