Aging citizens are required to make complex financial, health, and long-term decisions as they prepare for and then enjoy increasingly long periods of retirement. Moreover, as people age, there is a mismatch between the complexity of the decisions they face and the sometimes sudden, sometimes gradual cognitive declines that accompany aging. This project will develop new data that combines objective measures of behaviors and outcomes relating to wealth and portfolio choice, subjective measures of expectations, preferences, affect, measures of financial knowledge, and measures of cognition. By combining measurements across these domains, the project will develop a fuller understanding of the financial decision making and behavior of older Americans. The project will also advance the methodology for studying the behavior and decision making of older Americans by combining data from several modes: large-scale surveys conducted by mail, Internet, and telephone;laboratory experiments;cognitive interviewing;administrative records. Linking data for individual observations across these measurement modes will provide the fullest possible picture of the decision making and behavior, as well as enabling assessment and improvement of the methods of measurement. The methods advanced by the project for studying older Americans financial decision making will be extended to their healthcare decisionmaking. The financial crisis that began in the fall 2008 will have major effects on retirement finance. The project will study how the shocks to retirement assets have affected the retirement planning of older Americans and the well-being of retirees. Furthermore, the project will suggest and analyze innovations in retirement finance that better serve the needs of older Americans while addressing their need to make financial and other complex decisions while faced with the prospect of declining cognition.

Public Health Relevance

Older Americans must make complex decisions. This project combines data and analysis of wealth and portfolio choice with cognitive measurements to improve the understanding of older Americans'decisionmaking. The project will lead to innovations in retirement finance that will improve the well-being of retirees confronted with financial needs compounded by diminishing cognitive capacity.

Agency
National Institute of Health (NIH)
Institute
National Institute on Aging (NIA)
Type
Research Program Projects (P01)
Project #
5P01AG026571-08
Application #
8658786
Study Section
Special Emphasis Panel (ZAG1)
Program Officer
Phillips, John
Project Start
2005-09-30
Project End
2015-03-31
Budget Start
2014-04-15
Budget End
2015-03-31
Support Year
8
Fiscal Year
2014
Total Cost
Indirect Cost
Name
University of Michigan Ann Arbor
Department
Biostatistics & Other Math Sci
Type
Organized Research Units
DUNS #
City
Ann Arbor
State
MI
Country
United States
Zip Code
48109
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