Lifestyle Seniors Are More Risk-Averse – Fact or Fiction? 2/10/2025 | By Terri L. Jones While the stereotype proclaims that seniors are more risk-averse than younger adults, does the evidence back this belief? Seniors Guide writer Terri L. Jones digs into the topic. The general perception is that older people don’t take risks. They’re considered more likely than the younger population to obey traffic laws, limit the sodium and fat in their diet, and carry Band-Aids in their suitcase. But research has shown that while older adults may be measured and cautious about certain things, they’re not as risk-averse as everyone makes them out to be! Reasons that seniors are more risk-averse – or not The dopamine factor When you were young, you may have engaged in risky behavior like skateboarding or driving fast because your young brain released a large amount of the hormone dopamine when you participated in these thrilling activities. The reward of this chemical, known as the “happy hormone,” outweighed any possible negative outcomes. The rush you felt also motivated you to repeat these daring pastimes again and again. But with age comes a natural decline of dopamine in the brain. Because you have less dopamine incentivizing your behavior, the risks you take tend to be less driven by rewards and more by avoiding loss, according to research conducted in 2016 at the UCL Institute of Neurology and Max Planck UCL Centre for Computational Psychiatry and Ageing Research. “Older people were not more risk-averse overall,” explains Robb Rutledge, lead author of the research. “Older people were simply less attracted to big rewards, and this made them less willing to take risks to try to get them.” Take 89-year-old Ginny, for example. Although she’s fallen a few times and had a few fender benders, she chooses to live on her own and continue to drive. She knows there are risks involved in this lifestyle, but Ginny refuses to move to assisted living. It’s not because she derives any particular pleasure from living this way, but because she fears the loss of her independence. At the same time, a senior’s willingness to take risks – or not – can reflect the risk-taking tendencies of their younger years, a personality trait that endures. Sunny outlook To poke more holes in the theory that seniors are more risk-averse, other research found that older people often take bigger risks than younger people. When presented with two options with varying degrees of risk, older participants in this study were more likely than their younger counterparts to select the choice with the biggest gamble. Researchers chalked up this result to their better mood and greater optimism about the outcome. The selections made by the older participants were riskier, and they frequently turned out to be the worse choices. Thorsten Pachur, lead author of the study, attributed the poorer quality of seniors’ decisions to their difficulty in quickly processing information and solving problems. A 2024 study in Ageing & Society, reported in Cambridge University Press, agrees – with a caveat. Although older adults may make cognitive errors in new and unfamiliar situations, they “maintain a high ability to correct errors based on experience.” Contrary to the findings of the earlier study, these seniors seemed to view the risks associated with gaining rewards and avoiding losses the same. Related: Staying active despite joint pain Gray matter Another study, conducted at NYU’s Institute for the Interdisciplinary Study of Decision Making, proved that seniors’ risk aversion is not necessarily a function of their age. Their likelihood to take chances was found to be more related to their brains. For this research, 52 participants, ages 18 to 88 years, were asked to choose between receiving a sure thing of $5 or taking a gamble on winning $20. Side by side with this experiment, the posterior parietal cortex of the participants’ brains was scanned and the gray matter in this part of the brain measured. The decline in risk tolerance was found to correlate more with an age-related decrease in their gray matter volume than with their age per se. Go out on a limb While you may not have the nerve to rock climb or sink all your savings in a startup, taking risks – no matter how small – can still be beneficial for you. Go to a pickleball class, agree to a blind date, or, on the spur of the moment, pack a bag and head somewhere you’ve always wanted to visit. Not only will these risks challenge you and help you grow, but they’ll also keep your life interesting! Related: A positive attitude on aging has a positive effect Read More Terri L. Jones Terri L. Jones has been writing educational and informative topics for the senior industry for over 10 years, and is a frequent and longtime contributor to Seniors Guide.