Plan retirement early for better financial security

Kevin Magna

July 27, 2011

The ability to make decisions often decreases as people grow older – due to a decline in cognitive ability, which is often caused by Alzheimer's disease and other forms of dementia. Researchers at the BMO Retirement Institute in Canada recently studied the potential impact of the loss of brain function in older adults, especially concerning financial decision-making. They surveyed people over the age of 45 and found that most believe that investment skills increase with age. However, this may not be the case.

"Financial capacity is considered a complex mental activity that may be particularly vulnerable to aging," said Tina Di Vito the head of BMO Retirement Institute. "It's safe to say that, as one ages, one's capacity to make financial decisions will gradually deteriorate."

It is important to begin planning and saving for retirement early. It's no secret that health deteriorates as people grow older, which can lead to increased medical expenses. Seniors should be prepared for emergencies and other age-related healthcare costs. A personal emergency response system can help prevent serious injuries by getting help quickly should an accident occur.