Aging & Financial Decline: Early Warning Signs (2024)

There are a number of reasons why financial decision-making skills may decline, but older adults are more likely to struggle with managing money and are more susceptible to poor investment decisions. This is often a result of cognitive decline due to age or illness. Older adults are also more vulnerable to fraud or elder financial abuse, often by relatives.

According to the U.S. Securities and Exchange Commission, older adults are particularly vulnerable to tactics of scam artists who are “nice” or attempt to develop a false bond of friendship. Scam artists prey on older adults who are polite to others and have difficulty saying “no” or feel indebted to someone who has provided unsolicited financial and investment advice.

Despite years of accumulated knowledge and experience, it is likely that at some point financial capability will diminish with age, making it more difficult to competently handle money-related matters.

According to the National Endowment for Financial Education knowing how to identify the warning signs of financial decline can help friends, family, caretakers, clinicians and other engaged professionals — as well as the aging individuals themselves — be proactive instead of reactive about financial skill declines in everyday life and throughout the lifelong financial planning process. The following checklist from the study Early Warning Signs of Impaired Financial Skills in Older Adults can help identify early declines before diminished financial decision making or exploitation occurs.

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Aging & Financial Decline: Early Warning Signs (1)

EARLY WARNING SIGNS:

Impact of Aging on Financial Decision Making

It’s inevitable that an average person will see a change in their ability to make financial decisions as they age. While there are varying degrees of cognitive decline for each individual, the key is to be prepared. Knowing how to identify early warning signs* can help friends, family and caretakers be proactive instead of reactive in the planning process.

WARNING SIGN #1: Taking Longer to Complete Financial Tasks

EXAMPLES OF INCREASED SLOWNESS:

  • Preparing bills for mailing
  • Completing check and check register
  • Filing income taxes

WARNING SIGN #2: Missing Key Details in Financial Documents

EXAMPLES OF DIFFICULTY WITH REDUCED ATTENTION:

  • Identifying a bill that is overdue and needs prompt attention
  • Scanning/finding details in complex documents like a bank statement
  • Completing sections of a check register

WARNING SIGN #3: Experiencing Difficulty with Everyday Math

EXAMPLES OF DIFFICULTY WITH DECLINING MATH SKILLS:

  • Determining a return on an investment
  • Calculating a medical deductible
  • Doing two related calculations at same time, especially making change
  • Figuring a tip in a restaurant

WARNING SIGN #4: Showing Decreased Understanding of Financial Concepts

EXAMPLES OF DIFFICULTY WITH UNDERSTANDING:

  • Health care concepts like medical deductible
  • Terms in a bank statement like interest rate and minimum balance

WARNING SIGN #5: Identifying Risks in Investment Opportunities

EXAMPLES OF NEW DIFFICULTY:

  • Identifying a key risk in an investment purchase
  • Emphasizing benefits/return and minimizing risks

The full report, available at www.nefe.org/_images/research/Early-Warning-Signs-Impaired-Financial-Skills/Early-Warning-Signs-Impaired-Financial-Skills-Executive-Summary.pdf
, documents research funded by the National Endowment for Financial Education® (NEFE®) to identify very early financial skill declines in cognitively normal older adults through analyses of a unique longitudinal dataset funded by the National Institute of Aging of the National Institutes of Health.

Aging & Financial Decline: Early Warning Signs (2024)

FAQs

What should a 70 year old be doing? ›

Reading, working puzzles, and learning new things are just some of the many brain-stimulating activities that can help seniors in their 70s maintain good brain health. Families who find it difficult to care for their aging loved ones without assistance can benefit greatly from professional respite care.

What are the five stages of aging? ›

The Following Are the Five Stages of Aging That Most Older Adults Experience
  • Self-sufficiency. The first stage in the aging process is self-sufficiency. ...
  • Interdependence. Eventually, your aging loved one will require some support and assistance. ...
  • Dependence. ...
  • Crisis Management. ...
  • End of Life.
Jun 15, 2021

At what age do you start to feel the effects of aging? ›

Sign of aging #1: Achy muscles and stiffer joints

As you get older, your muscles age, too. As early as your 30s, your muscles can start to shrink and lose some of their fibers. At the same time, your tendons — the tissues that attach the muscles to your bones — become stiffer.

What happens to the body after age 60? ›

With age, bones tend to shrink in size and density, weakening them and making them more susceptible to fracture. You might even become a bit shorter. Muscles generally lose strength, endurance and flexibility — factors that can affect your coordination, stability and balance.

At what age do seniors start slowing down? ›

Declines in walking speed and aerobic endurance became evident in the 60s and 70s. More physical activity was associated with less physical decline, especially in ages 60 to 79.

How far should a 70 year old walk every day? ›

Older adults who walk three to four miles a day — 6,000 to 9,000 steps — were found to be 40 to 50 percent less likely to suffer a heart attack or stroke than those who walk a mile (2,000 steps) a day, according to research published in the journal Circulation.

At what age do you start feeling tired and old? ›

Well, this depends on a person's age, health, fitness level and lifestyle. Generally, the more years that pass, the more you'll value your beauty sleep, and its true senior fatigue is a real thing. However, most people start experiencing a decline in their energy levels by the time they reach their mid-thirties.

At what age does your face change most? ›

It is also a major factor in the dreaded “turkey neck” caused by sagging skin underneath the neck and vertical bands of muscles loosened by gravity and time. The biggest changes typically occur when people are in their 40s and 50s, but they can begin as early as the mid-30s and continue into old age.

How to stop shrinking as you age? ›

But you can stop yourself from shrinking too much by regularly exercising -- especially weight-bearing exercises like jogging or running, or other activities that work the legs and the hips. A diet rich in vitamin D and calcium also helps -- try almonds, broccoli or kale, or you can take supplements.

What three things should a person avoid once they are past 70 years old? ›

What 3 things should every 70 year old avoid if they want to...
  • Avoid most other 70-year olds. Gary admits, 'That sounds cruel'. ...
  • Avoid the retirement trap. The 'retirement trap', explains Gary, is the belief that life after work should offer endless leisure and rest. ...
  • Avoid drifting.
Jun 19, 2020

At what age do you age the most? ›

The results offer important new insights into what happens as we age. For example, the team suggests that the biological aging process isn't steady and appears to accelerate periodically — with the greatest bursts coming, on average, around ages 34, 60, and 78.

At what age do most people feel old? ›

While Americans stop feeling young in their early 40s, they start feeling old at 52, on average, according to a survey by the Worldwide Independent Network of Market Research.

What age is considered old for a woman? ›

Researchers found that over time the definition of old has, well, gotten older. That is, an extensive survey found people in their mid 60s now define old age as starting around 75.

What organs decline with age? ›

If enough cells decrease in size, the entire organ atrophies. This is often a normal aging change and can occur in any tissue. It is most common in skeletal muscle, the heart, the brain, and the sex organs (such as the breasts and ovaries). Bones become thinner and more likely to break with minor trauma.

What are the first signs of old age? ›

Some signs of aging can be seen from the outside: Your hair turns gray, and wrinkles and age spots appear on your skin. Our bodies are less able to store fluid in older age, so our spinal discs shrink and lose elasticity, for instance. As a result, people get smaller as they grow older.

What happens to your body at 70? ›

Your Bones, Joints, and Muscles

This will decrease your strength and flexibility. In your 70s, you might lose an inch or two off your height as disks in your back flatten. Exercise, especially the weight-bearing kind, can help prevent these changes and may even reverse them.

How active should a 70 year old be? ›

aim to be physically active every day, even if it's just light activity. do activities that improve strength, balance and flexibility on at least 2 days a week. do at least 150 minutes of moderate intensity activity a week or 75 minutes of vigorous intensity activity if you are already active, or a combination of both.

Is 70 years old considered elderly? ›

According to the United States Social Security Administration, anyone age 65 or older is elderly.

What life stage is a 70 year old? ›

Late adulthood spans the time when we reach our mid-sixties until death. This is the longest developmental stage across the lifespan.

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