Older Brains are Daredevils and Scam Targets

We often associate ‘risky behavior’ with young people, most visibly teenage boys on youTube.  Surprisingly, though, the brains of older adults may lead them to riskier financial bets than younguns. This is on display in both the stock market (as seniors ‘double-down’ to recoup their recent losses) and in the procession of charter buses that descend on Atlantic City.

Turns out that it’s not befuddlement that causes this, as seniors often still make sound decisions when in low pressure situations involving minimal emotion.  Rather, there is a physical change in the way the brain processes risk/reward trade-offs. This effect is magnified significantly when emotions are involved. This explains why some seniors are drawn to risky stock market investments after recent losses (it’s certainly emotional to see your nest egg tanking). The interaction of emotions and changed brain chemistry also helps explain why seniors appear more susceptible to fast-paced investment scams.  The fast pace heightens emotion, pressuring a brain already geared to higher risk-taking.