Aging and financial risk-taking: A meta-analysis

This paper examines the association between aging and financial risk attitudes by conducting a meta-analytical review of empirical evidence from the economic and psychological literature. We find that differences in effects are largely driven by the methods used to measure risk preferences. In particular, the positive association between risk aversion and age is confirmed in studies using survey data and lotteries, whereas psychological tasks highlight the role of the learning process and suggest that cognitive abilities and health status may influence preferences. The metaregression on effect sizes from survey-based studies reveals not only the importance of using longitudinal data but also that cognitive abilities and health status account for a significant portion of the heterogeneity in this sample.