Planning for our future incapacity is something no one wants to do. Yet new research, found that avoiding planning ahead is an especially serious problem in the elderly. Olivia S Mitchell, a professor of insurance/risk management and business economics/policy at the Wharton School of the University of Pennsylvania described her research findings in the Wall Street Journal.
Mitchell found that one reason seniors avoid planning ahead is because they become increasingly impatient with age. For example, seniors in the study were asked the following question:
“Suppose you were given the choice between receiving a payment today or a payment in 12 months. Would you rather receive $100 today or $154 in 12 months?” More