Understanding the Three Key Ages of Cognitive Change
Recent advances in cognitive aging research have provided new insights into how our brains—and our decision-making abilities—change as we age. These findings are not just fascinating, but essential for how we approach family financial planning. In this article, I’ll walk through the three key ages identified by researchers—57, 70, and 78—and explore what these milestones mean for advisors and families planning for the future.
The first critical age is 57. Research shows that this is when the brain’s white matter—the connective tissue that allows different regions of the brain to communicate—begins to decline. This impacts fluid intelligence and problem-solving, two skills that are foundational to effective financial decision-making. In fact, studies suggest that financial acuity peaks in our early fifties, so by 57, many of us may notice that complex decisions take a bit more effort. For advisors, this is a call to action: simplify conversations, reduce jargon, and focus on clear, actionable steps. Many clients in their late fifties are also juggling the demands of caring for both children and aging parents, all while at the height of their careers. Recognizing these pressures—and adjusting our approach accordingly—can help lighten their cognitive load and reinforce the value we provide.
At age 70, another shift occurs. Memory and executive function—our ability to plan, organize, and manage tasks—start to decline. This can make navigating intricate investment strategies or estate plans more challenging. Here, advisors can make a real difference by helping clients clarify their “Plan A”—the ideal scenario they hope to achieve in the next decade. Whether that’s staying in their home, supporting adult children, or funding a grandchild’s education, identifying these priorities allows us to tailor strategies that are both realistic and resilient. It’s also the right time to discuss contingency plans: What if health or financial circumstances change? By sequencing these conversations—starting with hope and goals, then moving to “what ifs”—we help clients maintain agency and optimism.
The third key milestone is 78, when research shows a spike in proteins associated with Alzheimer’s and cognitive decline. At this stage, introducing new, complex planning tools or radically different investment strategies is rarely effective. Instead, advisors should focus on simplifying existing plans and reinforcing familiar routines. The goal is to maintain consistency and adaptability, supporting clients as they navigate a period that can be marked by anxiety and uncertainty.
Building Strong Decision-Making Foundations in the Fifties
For clients in their mid-fifties, there’s a unique opportunity to lay the groundwork for strong decision-making in the decades ahead. This is a time when neuroplasticity—the brain’s ability to form new connections—is still robust, and crystallized intelligence (the wisdom gained from life experience) is at its peak. However, as white matter begins to decrease, it’s important to establish decision-making protocols and habits that will serve clients well as they age.
One powerful approach is to help clients reflect on teachable moments from their own lives. For example, if someone has seen how caregiving responsibilities affected their parents’ retirement, they may be more motivated to plan proactively. Advisors can also encourage situational awareness and thoughtful execution of decisions, ensuring that clients are prepared for both expected and unexpected changes.
Open, honest conversations about intergenerational planning are essential—especially for those in the sandwich generation, who may be supporting both aging parents and adult children. For solo agers, it’s important to explore alternative strategies for financial security and future care. Throughout, the advisor’s role is to simplify, clarify, and support. By presenting information in straightforward terms and avoiding unnecessary complexity, we make it easier for clients to process and act on important decisions.
Supporting Clients Through Cognitive Transitions
As clients approach age 70 and beyond, our strategies must evolve to address changes in memory and executive function—while preserving clients’ sense of autonomy. One effective technique is to focus first on what clients are most hopeful for: their Plan A. This could be anything from maintaining independence to supporting future generations. Once these priorities are clear, we can introduce contingency planning—always framing it as a way to protect what matters most, rather than as a response to fear or loss of control.
Visualization exercises can also be helpful. If clients have trouble imagining their own future, ask them to picture their children or grandchildren reaching important milestones.
This not only makes planning more relatable, but also reinforces the intergenerational connections that are so often at the heart of financial goals.
Finally, for clients nearing 78 or showing early signs of cognitive decline, consistency is key. Avoid introducing new tools or strategies that may be confusing. Instead, focus on reinforcing familiar plans and providing regular, reassuring check-ins.
By understanding how cognitive changes impact decision-making at different life stages, advisors can better support clients and their families. Whether helping fifty-somethings build strong foundations or guiding septuagenarians through simplified planning, the key is to meet clients where they are and empower them to make informed choices that align with their values and priorities.
Related: The Power of Anticipatory Regret in Financial Planning