Abstract
Most countries in the world are undergoing a significant demographic transition due to declining fertility rates and increasing life expectancy. In the European Union, the old-age dependency ratio, a commonly used measure to assess the aging challenge, was 25 percent in 2008, with almost four working-age persons for every person aged 65 and over. It is projected to nearly double, rising from 33.4 percent in 2023 to 59.7 percent by 2100, resulting in fewer than two working-age persons for every person aged 65 and over. This trend is not unique to the Old Continent but is common to several countries. For example, in Japan, the old-age dependency ratio rose from 28 percent in 2000 to 55 percent in 2023 and is projected to reach 79 percent by 2050. In China and Korea, old-age dependency ratios are projected to rise from 22 percent and 27 percent in 2023 to 54 percent and 80 percent by 2050, respectively. This dramatic shift in the population's age structure will impact work patterns, economic dynamism, innovation, and the inter-generational contract at the foundation of welfare states. One possible way in which an aging population may affect economic growth and prosperity is through changes in aggregate risk attitudes. Studies show that countries with higher aggregate risk aversion tend to have lower total factor productivity and fewer individuals in self-employment. As people age, their willingness to take financial risks often decreases, reflecting changes in their personal needs. For example, someone in their thirties might pursue an aggressive financial strategy to grow their net worth. However, by the time they reach 50, their focus is likely to shift towards saving for retirement and supporting their family. This tendency becomes even stronger by age 70. Additionally, this shift might not follow a linear path, as neurological diseases that impair cognitive functioning could also influence financial decisions. Actually, aging is not only a biological process but also a cognitive one, and both factors need to be considered equally. In the seminar, I will present two contributions on financial risk- propensity in older age individuals, both healthy older adults and Parkinsonian patients. First, I will present a meta-analysis on financial risk-taking and its evolution with aging; then, a contribution focused on Parkinsonian patients. Parkinson’s disease needs particular attention since it is a neurological pathology that is associated with impulse-control disorders and gambling.