[Source – thirdage.com]
A recent study conducted by psychologists from the University of Birmingham and the University of Oxford has revealed that older adults are more likely to be influenced by the financial preferences of others compared to younger adults. Published in Communications Psychology, the research aimed to examine how people’s financial decision-making, specifically impulsive decisions, varies across age groups. The study found that individuals aged 60 and above are more susceptible to social influence in their financial choices than younger adults aged between 18 and 36.
To better understand these behaviors, the researchers recruited 76 young adults (18-36) and 78 older adults (60-80). These participants were carefully matched in terms of gender, education, and intelligence. All older participants were in good health, having been screened for dementia and other age-related conditions that could affect decision-making. The study asked participants to make a series of financial decisions between impulsive options, which involved receiving a smaller sum immediately, and more restrained options, which promised a larger reward after a delay. Knowing that one of their decisions would have real financial consequences at the end of the experiment, participants were incentivized to reveal their true preferences.
Influence of Social Factors on Decision-Making
After making their initial choices, participants were shown the decisions of two other “people” (in reality, computer-generated responses). One set of responses leaned toward impulsive financial decisions, while the other set favored delayed gratification. Participants were then asked to make a new series of decisions after seeing the choices made by these other “individuals.”
Through advanced mathematical modeling, the researchers discovered that older adults were significantly more influenced by impulsive decisions compared to younger adults. The older participants were more likely to change their original choices after observing impulsive behaviors, shifting toward immediate financial rewards. In contrast, younger participants were more resistant to this social influence, tending to stick with their original preferences even after being exposed to impulsive decisions from others.
Emotional Impact and Future Implications
The study also explored the emotional factors associated with susceptibility to social influence. Among older adults, those who reported higher levels of affective empathy – the ability to feel and respond to others’ emotions – were more likely to be influenced by impulsive financial decision-makings. This suggests that emotional sensitivity might play a role in the decision-making processes of older adults, particularly when they observe others making hasty financial choices.
Professor Patricia Lockwood, the senior author of the study, highlighted the importance of understanding these age-related differences. She noted that further research could help develop programs aimed at supporting older adults in making more informed financial decisions, minimizing the risk of impulsive behaviors driven by external influences. Lead author Zhilin Su added that in today’s world, where misinformation is widespread, understanding the science of social influence is crucial for developing strategies to mitigate its negative effects.
This research provides valuable insights into how financial decision-making evolves over a lifetime and how social factors can impact impulsive behavior, particularly in older adults.
