With ageing populations, we can expect more people to be taking care of their finances and affairs in their old age. But economists now warn that could be disastrous.
As reported here, they say our ability to manage our finances is affected by declining cognitive function due to the aging process.
According to Harvard economist David Laibson, we make our best financial decisions when we get to 53. After that, it's all downhill. And this could have a massive impact on economies as society gets older. As Laibson says, about 35 per cent of wealth is held by people aged 65 and older. That proportion will increase as boomers age.
For regulators, it's a grim scenario. What sort of controls do you bring in to stop financial mismanagement by a section of the population holding nearly 40 per cent of wealth?
no comment untill now