With the global population aging rapidly, it is crucial to understand how age-related cognitive decline may impact decision-making processes, particularly in critical areas, such as pension planning and financial choices. The Netherlands’ 65+ population is expected to reach its peak around 2040, with 4.6 million receiving pensions. While pension-related decisions are inherently complex, age-related cognitive decline makes them even more challenging. This is because aging strongly affects the prefrontal cortex, crucial for complex decisions, especially under uncertainty. This project explores how the aging brain shapes pension-related decision-making by using a neuroscientific approach to reveal underlying psychological processes and assessing AI tools as potential solutions for decision-making challenges. Unlike survey-based studies, this project is experimental where we focus on psychological factors such as cognitive load and emotional stress in pension choices. The project is divided into two themes.

Theme 1 focuses on neuropsychological mechanisms underlying pension-related decisions, often triggering stress and thereby impacting choice behavior.

Theme 2 explores the impact of AI tools on reducing cognitive (choice complexity) and emotional burdens (choice stress) associated to pension-related decisions. We will recruit participants aged 58+, as they will soon face real pension decisions. This project is relevant to the Dutch pension and insurance sector, offering both insights and solutions to address decision-making challenges. Specifically, the project delivers tailored tasks and AI solutions that support informed pension choices among the aging population. To ensure practical value, the project will deliver a pension chatbot that offers personalized guidance for real-world use.

This research is funded by Instituut Gak.