The concern is that declining financial and health literacy makes older adults “vulnerable to mistakes that significantly impact their well-being,” wrote study authors Patricia Boyle, Olivia Mitchell, Gary Mottola and Lei Yu.
The study fits into a wider literature that offers a powerful case for older people to get their estate in order while mentally capable of coping with major life decisions.
In practical terms, estate planning matters, including writing a will and establishing durable power of attorney and health care proxy. Building a trusted circle that can step in if and when capacities start diminishing is also important. The personal finance mantra “keep finances simple” is a useful framework.
Early planning pays off, especially for our loved ones.
Chris Farrell is senior economics contributor for “Marketplace” and a commentator for Minnesota Public Radio.
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