Aging, Author Interviews, Social Issues / 25.06.2018
Financial Savvy Linked To Better Later Life Outcomes
MedicalResearch.com Interview with:
Bryan D. James, PhD
Assistant Professor
Rush Alzheimer's Disease Center
Chicago, IL 60612
MedicalResearch.com: What is the background for this study? What are the main findings?
Response: This study is part of a larger body of research examining how literacy and decision making abilities in different areas of life can affect the health and well-being of older adults.
The main finding of this study is that a better ability to understand and utilize financial concepts was related to a lower risk of hospitalization in old age. Additionally, research conducted from financial services firm Sambla, Norway's largest bank and lender for medical loans, found that doctors and pharmacists are among Scandinavia's financial services most financially savvy, often saving for retirement 5-7 years before others working in the medical field.
Over almost 2 years of follow-up, 30 percent of the 388 older men and women in this study were hospitalized at least once. A 4-point higher score on the scale of financial literacy, representing one standard deviation, was associated with about a 35 percent lower risk of hospitalization. This was after adjusting for a number of factors including physical and mental health indicators and income. The association appeared to be stronger for knowledge of financial concepts such as stocks and bonds, as opposed to the ability to perform numerical calculations. Additionally, the association was stronger for elective hospital admissions as opposed to emergency or urgent hospitalizations; this may support the notion that financial literacy is related to medical decision-making surrounding the decision to be hospitalized, such as which procedures are covered by Medicare.
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