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Declining financial and health literacy among older men and women

Author

Listed:
  • Boyle, Patricia
  • Mitchell, Olivia S.
  • Mottola, Gary R.
  • Yu, Lei

Abstract

Financial and health literacy decline at older ages, and such deterioration in later life is associated with adverse outcomes. Nevertheless, it is unclear whether the rate or likelihood of decline diverges over time across subgroups of the elderly. This study used longitudinal data to assess whether older men and women differ in the likelihood and rate at which their financial and health literacy deteriorates. After assessing their financial and health literacy using a 32-item measure at baseline, we surveyed 1,075 community-resident older adults without dementia at baseline, and followed them annually thereafter, for an average of six waves. We document that the average financial and health literacy score at baseline was 69.6% (out of 100%), falling by about one percentage point per year on average. Men score 3.6 percentage points higher than women at baseline, but their likelihood and rates of decline over time do not differ from women’s, controlling for age, income, education, and medical conditions. Similar patterns were observed for financial and health literacy separately. The financial and health literacy gender gap persists as people age, suggesting that efforts to improve financial and health literacy among both women and men prior to old age would help but would not close the gender differential in financial and health literacy.

Suggested Citation

  • Boyle, Patricia & Mitchell, Olivia S. & Mottola, Gary R. & Yu, Lei, 2025. "Declining financial and health literacy among older men and women," The Journal of the Economics of Ageing, Elsevier, vol. 30(C).
    • Handle: RePEc:eee:joecag:v:30:y:2025:i:c:s2212828x25000027
    DOI: 10.1016/j.jeoa.2025.100547
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    References listed on IDEAS

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    1. Lindsay C. Kobayashi & Jane Wardle & Michael S. Wolf & Christian von Wagner, 2016. "Aging and Functional Health Literacy: A Systematic Review and Meta-Analysis," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 71(3), pages 445-457.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2008. "Planning and Financial Literacy: How Do Women Fare?," American Economic Review, American Economic Association, vol. 98(2), pages 413-417, May.
    3. Lusardi, Annamaria & Mitchell, Olivia S & Oggero, Noemi, 2020. "Understanding Debt in the Older Population," CEPR Discussion Papers 15568, C.E.P.R. Discussion Papers.
    4. Annamaria Lusardi & Olivia S. Mitchell, 2017. "How Ordinary Consumers Make Complex Economic Decisions: Financial Literacy and Retirement Readiness," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-31, September.
    5. Shimizutani, Satoshi & Yamada, Hiroyuki, 2020. "Financial literacy of middle-aged and older Individuals: Comparison of Japan and the United States," The Journal of the Economics of Ageing, Elsevier, vol. 16(C).
    6. Tinghög, Gustav & Ahmed, Ali & Barrafrem, Kinga & Lind, Thérèse & Skagerlund, Kenny & Västfjäll, Daniel, 2021. "Gender differences in financial literacy: The role of stereotype threat," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 405-416.
    7. Annamaria Lusardi & Pierre-Carl Michaud & Olivia S. Mitchell, 2017. "Optimal Financial Knowledge and Wealth Inequality," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 431-477.
    8. Kim, Hugh H. & Maurer, Raimond & Mitchell, Olivia S., 2021. "How financial literacy shapes the demand for financial advice at older ages," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).
    9. Sigurdur Gudjonsson & Inga Minelgaite & Kari Kristinsson & Sigrún Pálsdóttir, 2022. "Financial Literacy and Gender Differences: Women Choose People While Men Choose Things?," Administrative Sciences, MDPI, vol. 12(4), pages 1-9, November.
    10. Marguerite DeLiema & Martha Deevy & Annamaria Lusardi & Olivia S Mitchell & Deborah Carr, 2020. "Financial Fraud Among Older Americans: Evidence and Implications," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 75(4), pages 861-868.
    11. Streeter, Jialu L., 2020. "Gender differences in widowhood in the short-run and long-run: Financial, emotional, and mental wellbeing," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
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    More about this item

    Keywords

    Aging; Financial literacy; Health literacy; Gender;
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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