The Interplay of Aging, Cognition, and Financial Well-being: Implications for Couples

January 3, 2024

Dr. Benyamin Mansoori

MD, FRACGP, FACAM
Advance Diploma in General Dermatology
Diploma of Cosmetic Medicine

The Interplay of Aging, Cognition, and Financial Well-being: Implications for Couples

The intersection of aging, cognitive function, and financial stability has garnered increased attention among economists and public health researchers in recent years. The ever-increasing human lifespan has led to a growing population facing cognitive decline in their later years. This demographic shift presents a unique challenge, as older adults are often tasked with making crucial financial decisions, such as retirement planning, managing superannuation, and navigating investments, while potentially grappling with cognitive impairment.

These financial choices have far-reaching consequences, particularly considering the extended lifespan of individuals today. Moreover, the influence on one’s partner in these decisions adds an additional layer of complexity to the equation.

To explore the intricate dynamics at play, researchers from the Queensland University of Technology initiated a study aimed at investigating how cognitive decline in one partner might impact the financial situation of the other.

The result of a study

The study recruited married couples aged 60 or older. Participants underwent comprehensive assessments, including evaluations of their overall cognitive scores, the extent of their cognitive decline over the past decade, and their financial competency and decision-making abilities. This assessment involved presenting participants with hypothetical scenarios that required them to make calculations to determine the most advantageous course of action.

The study encompassed 63 husband-wife couples, spanning an age range of 60 to 88 years. Typically, husbands were older than their wives and exhibited lower overall cognitive function.

The researchers made a noteworthy discovery: when women perceived that their husbands had experienced cognitive decline, they were more inclined to assume responsibility for financial tasks and decision-making. This finding suggested that women were effectively compensating for their partner’s cognitive changes. However, this compensatory behavior was not observed when the roles were reversed. The researchers argue that this compensatory behavior could hold significant implications for the financial well-being of married couples as they age.

Financial management within the partnership

Traditionally, couples often adopt a “divide and conquer” approach to financial matters, with men taking charge of long-term financial decisions, such as investments, while women handle day-to-day financial concerns. However, the researchers caution that adhering to this conventional pattern could have adverse consequences, especially when one partner experiences substantial cognitive decline, and the other is unable to adapt and compensate for the resulting knowledge and capability gap in the realm of financial management within the partnership.