|Title||Who Decides? Financial Decision-Making Among Older Couples|
|Publication Type||Journal Article|
|Year of Publication||2022|
|Authors||Lim, HN, Shin, SHyun, Wilmarth, MJ, Park, N|
|Journal||Journal of Family and Economic Issues|
|Keywords||Bargaining power, Cognitive Ability, Constraints on self-control, Couples, Financial decisions, Risk tolerance|
Using a sample of 2621 respondents from the 2014 Health and Retirement Study (HRS), this study identifies factors associated with who makes complex financial decisions among older couples. Our results show that the bargaining power of wives has a positive association with their decision-making about savings, investments, and health insurance, while the power of husbands is negatively associated with wives being more responsible for decisions about health insurance and tax filing. Moreover, while the husband’s sense of control, risk tolerance, and cognitive ability are associated with decisions for all financial decisions, the wife’s sense of control, risk tolerance, and cognitive ability are related to some financial decisions only. Our results show some moderating roles of the perceived spousal social support, household income, and mother’s education on the association between the four explanatory variables (bargaining power, sense of control, risk tolerance, and cognitive ability) and who makes the financial decisions. The findings provide potential benefits for older couples who consult financial professionals about financial management.