53, the peak age for dealing with money

London - Our ability to make sound financial decisions peaks at 53 and then declines, a study claims.

Academics at Harvard University said cognitive performance declines in the mid-50s because we lose our ability to solve new problems.

It also warned that by the time pensioners reach their 80s, half will have serious cognitive impairment which renders them unable to make good financial choices.

There was bad news for the young too – they may also struggle to make an important decision about their money because they do not have the financial knowledge acquired through experience.

It follows a recent study by the Money Advice Service which found that one in five over-55s could not choose the better deal from two financial products.

Separate research by the English Longitudinal Study of Ageing found men’s memory remained stable until they reached 60 to 64, after which it declined.

Ros Altmann, the Government’s older workers champion, who also studied at Harvard, claimed the latest research was ageist.

“Everybody is different so there is no point in making stereotypes,” she told the Telegraph. “There are plenty of people in their 80s who are still very mentally capable.” - Daily Mail