The Impact of Aging on Cognitive Function


An article by Justin Fox for Bloomberg discusses a 2009 study by David Laibson, Sumit Agarwal, John C. Driscoll and Xavier Gabaox that found that cognitive function peaks at age 53 and starts to decrease rapidly, on average, for people in their 70s. The four economists examined the fees and interest rates paid by thousands of borrowers in 10 different types of credit transactions and found that, on average, such costs were minimized at age 53.3.

As more members of the baby-boom generation start moving into their 70s, this data takes on special significance.

The Center for Retirement Research at Boston College has a summary of the study here.

Over the last several years, AAII has covered the area of aging and its impact on investor abilities:

If you are not an AAII member but want unlimited access to AAII’s library of educational articles, simply take a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your assets.


4 Replies to “The Impact of Aging on Cognitive Function”

  1. “Not your business” is one possible sign of the onset of impaired cognitive function. We are never so smart that we can’t accept, or at least consider good advice…

  2. Pingback: AAII Blog

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