Chris Brooks|Ivan Sangiorgi|Carola Hillenbrand|Kevin Money
Why are older investors less willing to take financial risks?
ICMA Centre|ICMA Centre|Henley College|Henley College
investigate link age tolerance financial risks context attitude risk questionnaires completed clients meeting financial advisors using unique database comprising responses half million questionnaires show risk tolerance declines increasing albeit slow rate age investigate explanatory power ability bear losses declining investment horizon retirement effects finding variables considerably greater explanatory power crosssection risk aversion age able partially mediate link age risk tolerance unable uncover evidence declining cognitive abilities among older investors able explain lower willingness take financial risks overall results indicative modest age effect risk tolerance cannot attributed changes observable characteristics differ younger older investors