Publications [#382245] of Gregory R. Samanez-Larkin

Journal Articles

1. Frank, CC; Mottola, GR; Chen, M; Yu, L; Boyle, PA; Samanez-Larkin, GR; Seaman, KL (2025). Overconfidence and Financial Risk Tolerance in Older Age.. The journals of gerontology. Series B, Psychological sciences and social sciences, 80(6), gbaf032. [doi]
   (last updated on 2025/06/16)

   Abstract:
   

   Objectives

   Excessive financial risk-taking in older age can have harmful consequences as opportunities to recover lost wealth are limited. Understanding financial risk-taking in older age is important for identifying vulnerabilities and developing interventions to empower aging investors to make wise financial choices. In this paper, we explore how overconfidence in financial knowledge affects financial risk-taking among older adults.

   Methods

   We examine this research question in older adults aged 58-101 (N = 1,242) using data from the Rush Memory and Aging Project (MAP).

   Results

   After controlling for demographics, overconfidence was associated with self-reported financial risk tolerance such that those who were more overconfident reported tolerating more financial risks. Moreover, this relationship emerged for both healthy older adults and those diagnosed with mild cognitive impairment. However, overconfidence did not predict performance on a behavioral measure of risk aversion.

   Discussion

   The present results suggest that overconfidence may partially contribute to financial risk-taking in older adults, regardless of cognitive status. Thus, interventions aimed at calibrating confidence to actual levels of financial knowledge could be an impactful target for intervention.