Retiring: Our Financial Smarts Erode Quickly After Age 60 (Wall Street Journal)

A new study investigates how older Americans make decisions about money — and finds that financial literacy and decision-making skills decline significantly with age. These skills, the survey shows, peak in middle age and then decline by about 2% each year after age 60. Critically, this happens right as people are asked to make complex decisions about Medicare and Social Security, and as they continue to plan and assign retirement distributions. 

What can you do to protect your assets and retirement security? Acknowledge that your financial literacy will decline with age and take steps to insure the financial decisions you make in retirement become increasingly passive.