RETIREMENT

RESEARCH
November 2016, Number 16-17

COGNITIVE AGING: A PRIMER

By Anek Belbase and Geoffrey T. Sanzenbacher*

Introduction
Cognitive aging has received growing attention in will generally need more time to learn new skills or
recent years as many researchers have documented a concepts; and 2) many retirees can continue to man-
significant age-related decline in the brain’s process- age their own financial affairs in their 70s and 80s,
ing ability. This decline could potentially undermine though about one quarter will likely develop a cogni-
retirement security in two ways: 1) by limiting the tive impairment that will pose a threat to their finan-
ability to work longer; and 2) by eroding the capacity to cial independence.
manage finances in retirement.
This brief summarizes the explosion of recent
research on cognitive aging by answering basic ques- Defining and Measuring
tions about what researchers are learning and why
their findings matter to retirement experts and the
Cognitive Ability
public. This overview is the first brief in a series of
A basic definition of cognition – “the act or process of
three; the other two will focus on how cognitive aging
knowing” – points out two aspects of cognitive ability:
affects the ability of individuals to work between ages
1) having knowledge; and 2) acquiring knowledge.1
50-70 and to handle personal finances between ages
Psychologists commonly refer to knowledge as “crys-
70-90.
tallized intelligence” and the ability to process new in-
The discussion proceeds as follows. The first sec-
formation as “fluid intelligence.” Figure 1 (on the next
tion introduces definitions and measures of cognitive
page) illustrates how overall cognitive ability depends
ability. The second section discusses how researchers
on these two aspects of cognition and provides some
identify changes in cognitive ability with age, while the
examples.
third summarizes their findings. The fourth section
Most real-world activity relies on both crystal-
discusses how age-related changes in different cogni-
lized and fluid intelligence. Some researchers have
tive capacities can affect real-world performance. The
attempted to measure performance on everyday
final section concludes that: 1) most older workers can
tasks directly. For example, driving performance
maintain their productivity up to age 70, although they

* Anek Belbase is a research fellow at the Center for Retirement Research at Boston College (CRR). Geoffrey T. Sanzen-
bacher is a research economist at the CRR.
2 Center for Retirement Research

Figure 1. Components of Cognitive Ability Measuring Changes in

Cognitive ability
Cognitive Ability
While a variety of tools exist to measure different
aspects of cognitive ability at a given point in time,
Crystallized intelligence Fluid intelligence measuring changes over the life-cycle requires its own
methodologies. For this purpose, researchers have
Problem
Vocabularly Procedural Reaction solving &
relied on two basic study designs: 1) cross-sectional
Memory
& facts knowledge speed planning studies, which compare the performance of, say, a
30-year old to a 60-year old in a test conducted at the
Source: Authors’ illustration. same point in time; and 2) longitudinal studies, which
compare the performance of the same individual at,
say, ages 30 and 60.
has been studied extensively using simulators, with Cross-sectional studies are relatively easy to admin-
performance depending on both knowledge, such as ister, but tend to overestimate the rate of cognitive de-
knowing traffic rules, and fluid ability, such as reacting cline because of cohort effects – factors such as better
quickly to avoid hazards.2 But the results of such test- education and nutrition have led more recent cohorts
ing are hard to extrapolate to other tasks, because they to perform better on tests than earlier cohorts. As a
do not address why performance varies. For example, result, any point-in-time comparison will yield large
reduced driving ability in one’s 70s and 80s may not differences between the test scores of the young and
equate to poor financial capacity because driving could old that may not be predictive of the younger genera-
have deteriorated due to a decline in reaction speed, tion’s cognitive path.6
which is unrelated to financial decision-making ability. Longitudinal studies eliminate this problem by fol-
On the other hand, if driving performance declined lowing the same individuals over time. However, this
due to difficulty remembering the meaning of road approach is expensive, since studies must last decades
signs, the underlying memory problems could affect to be useful. They also can underestimate the rate of
financial judgement as well. age-related decline in cognitive ability for two reasons:
Standardized tests offer an alternative to simulated 1) people who drop out of the study may be more
tasks that is more generalizable because it identifies likely to have experienced steep decline (due to poor
the processes underlying behavior. The IQ test, ini- health or dementia); and 2) taking the same test on
tially developed to assess whether young children had multiple occasions leads to improvements in perfor-
the cognitive ability to attend first grade, serves as a mance due to practice. To make matters worse, both
model for many of these tests.3 This type of cognitive the longitudinal and cross-sectional approaches suffer
test typically consists of multiple choice questions that from “noise” – the same person can do differently
assess a mix of crystallized and fluid intelligence. on the same test at different times, even if taken just
But standardized tests are an indirect measure of seconds apart.
cognitive ability. A growing body of research relies on Fortunately, researchers have developed ways to
brain scans to directly observe brain activity. These correct for these shortcomings, such as taking the av-
scans are usually administered while participants per- erage of several tests to reduce the effect of noise from
form a task like mentally rotating three-dimensional any single test. Problems associated with cross-sec-
images.4 Such scans have allowed researchers to tional and longitudinal studies can also be addressed
explain where in the brain different cognitive activities through statistical techniques. For example, in cross-
originate. This knowledge, in turn, has helped explain sectional studies, one can account for the differences
how age-related changes in specific brain regions in test scores caused by differences in education by
could affect cognitive ability and performance.5 comparing scores only among individuals with similar
 Issue in Brief 3

educational attainment. In longitudinal studies, one This loss in neural matter follows a pattern – from the
can figure out how much, on average, practice boosts front to the back of the brain and from the outer parts
test scores, and adjust the scores of people who take of the brain to the inner parts of the brain.7 Figure 3
the test often to reflect the boost they received from shows these patterns in a brain scan, with the older
this practice. Figures 2a and 2b show the value of brains having lower concentrations of neurotransmit-
these adjustments. ter receptors in the front of the brain, as indicated by
low amounts of red and green shading.

Figure 2. Age-related Changes in Episodic Memory

Figure 3. Difference in Concentration of
a. Unadjusted
Dopamine Receptors, by Age
10
Estimated memory change (T score)

-10

-20
Cross-sectional data (unadjusted) 24 years 44 years 86 years
Longitudinal data (unadjusted)
-30 Note: These images are PET scans from three subjects,
35 40 45 50 55 60 65 70 75 80 85 showing the concentration of dopamine receptors in the
Age brain. Red indicates highest concentrations, dark spots
indicate lowest.
b. Adjusted Source: Brookhaven National Laboratory (1998).
10
Estimated memory change (T score)

These changes in the brain are correlated with pre-

0 dictable age-related changes in cognitive ability.8 On
average, starting in an individual’s 30s or 40s, reaction
-10 speed starts to slow, working memory starts to deterio-
rate, and other components of fluid intelligence begin
to weaken, with noticeable declines in fluid intelli-
-20
gence widespread by the time people are in their 50s
Cross-sectional data (adjusted for education)
Longitudinal data (adjusted for practice) and 60s. But crystallized intelligence tends to increase
-30 or remain steady into one’s 70s and 80s among people
35 40 45 50 55 60 65 70 75 80 85 without cognitive impairment.
Age With declining fluid intelligence on one hand,
Source: Adapted from Nyberg et al. (2012). and resilient crystallized intelligence on the other, the
ability to perform everyday tasks can either decline
or improve with age, depending on both the task and
What We Know About the person. With respect to tasks, older adults have a
harder time reading or hearing when confronted with
Age-related Cognitive Change distractions, are more prone to making errors when
asked to perform under time pressure, and are less
Several themes have emerged from research on age- able to acquire and transfer new information.9 On
related cognitive change using the methods outlined the other hand, older adults tend to score better than
above. Brain scans reveal that the brain loses matter younger adults on tests of general and domain-specific
as one ages, with acceleration toward the end of life. knowledge.10
4 Center for Retirement Research

Of course, within any age group, the level of and 3) the capacity of the brain to acquire completely
cognitive ability varies, as does the degree of cognitive new functions, such as learning how to play a musical
change. Figure 4 illustrates these variations using a instrument for the first time, is severely diminished
test of cognitive function that incorporates both fluid due to changes in brain structure.
and crystallized intelligence. The test was adminis- Since different cognitive capacities decline at dif-
tered several times over a 7-year period to a sample of ferent rates, the effect of cognitive aging on real-world
3,075 individuals who were ages 70-79 at the start of performance depends on the situation. In situations
the study. In addition to showing variation in the level where an individual has direct experience and exten-
of cognitive score at age 70, the figure identifies three sive practice – like paying bills or speaking to a cus-
distinct groups who differ in the changes they experi- tomer service representative – age generally improves
ence over time. The “maintainers” have a higher ini- performance through one’s 50s and 60s, with little
tial score and show no decline over the 7-year period, decline thereafter; performance speed, however, could
while the other two groups have lower initial scores decrease, especially in one’s 70s and 80s. In situa-
and show minor or major declines. tions where an individual has related experience, but
reactions are not automatic, like driving on unfamiliar
streets, age generally leads to decreased performance
starting in one’s 60s. Declines in performance are
Figure 4. Cognitive Scores Over 7-Year Period for
especially significant when a task is complex, such
Individuals Initially Ages 70-79
as driving on unfamiliar streets on a rainy night. In
100 situations where an individual has little or no relevant
experience, like learning a new language, age often
results in significant declines in the quality and speed
of performance starting as early as childhood.
Cognitive score

90

80
Conclusion
Maintainers
Minor decliners Reviewing the ways in which cognitive aging could
Major decliners affect real-world performance provides useful insights
70 for anyone concerned with the well-being of retirees,
Y1 Y3 Y5 Y8
from policymakers to financial planners to individuals
Testing year
themselves.
Source: Reproduced from Yaffe et al. (2009). One way that cognitive change could affect retire-
ment security is by limiting the ability to work. In
this respect, the wide range of cognitive skills that
older workers build and maintain as they age implies
How Change in Ability Affects that most workers can remain productive in their
Real-World Performance 50s and 60s despite cognitive aging. This finding is
supported by numerous studies that show insignifi-
cant age-related losses in productivity across a variety
The research clearly shows that fluid intelligence de-
of occupations.11 However, declines in processing
clines with age while crystallized intelligence accumu-
capacity and speed can affect the performance of
lates, and that the brain changes in both structure and
some workers engaged in complex tasks under time
activity. These changes together predict the follow-
pressure. For example, the performance of air-
ing three patterns: 1) the brain acquires the ability to
traffic controllers, who must track the flight paths of
react intelligently and automatically to a wider range
multiple airplanes at once while also quickly react-
of situations with age due to increased crystallized
ing to unusual situations, declines significantly by
intelligence; 2) the maximum capacity and speed for
age 56.12 And diminished ability to adapt, or acquire
processing information at any given moment dimin-
completely new skills, implies that older workers will
ishes with age, largely due to declining fluid abilities;
require more time to adjust to occupational changes,
Issue in Brief 5

a finding supported by studies that show that the abil- Endnotes

ity to learn new material (both in the lab and on the
job) diminishes with age.13 1 Merriam-Webster’s Collegiate Dictionary (2010).
A second way in which cognitive change could
affect retirement security is through a diminished 2 Andrews and Westerman (2012).
capacity to manage money. This skill is largely learned
through experience; thus, older individuals typically 3 Other prominent tests include the Scholastic
have already acquired the cognitive skills to carry out Aptitude Test (SAT) for assessing general academic
common tasks, like paying bills on time.14 However, potential and the Armed Forces Vocational Aptitude
due to the increasing prevalence of 401(k) plans – Battery test for determining suitability for an occupa-
where (unlike traditional pensions) retirees must tion. For examples of some other common cognitive
decide how to invest their nest egg and how much tests, see the Appendix.
to draw from it each month – even retirees used to
making financial decisions might need help from a 4 For example, see Ivanoff, Branning, and Marois
financial expert. And retirees who take over finan- (2009) or Langenecker, Nielson, and Rao (2004).
cial matters from a spouse (due to death or illness)
must learn new financial concepts in their 70s and 5 For example, see Casey et al. (2005).
80s if they want to avoid making financial mistakes.15
Finally, the risk of dementia and severe cognitive 6 For an excellent analysis of the methodological con-
impairment rises exponentially in one’s 70s and 80s.16 siderations, see Schaie and Willis (2015), Chapter 2.
This pattern means that a significant share of retirees
will eventually need help managing their finances in 7 See Chapter 1 of Craik and Salthouse (2008),
retirement, which includes being protected against DeCarli et al. (1995), Pantoni and Garcia (1997), or
financial fraud and abuse. Sullivan et al. (1995).
The next two briefs in this series will elaborate on
how these two topics – work and finances – are af- 8 Individuals who show greater changes in brain
fected by cognitive decline. structure and activation also show greater decline
in fluid cognitive abilities; brain regions that show
the most deterioration correspond to a decline in the
abilities mediated by those regions (for a summary,
see Salat (2011)).

9 Mund, Bell, and Buchner (2010).

10 Ackerman (2000).

11 See Jeske and Rossnagel (2015) and Ng and Feld-

man (2013).

12 Heil (1999). The Federal Aviation Authority actu-

ally requires its air traffic controllers to retire at 56,
with a provision allowing those with exceptional skills
and experience to continue until 61.

13 Salthouse (2012).

14 Schaie and Willis (2016).

15 For example, see Agarwal et al. (2009).

16 Wilson et al. (2003).

6 Center for Retirement Research

References
Ackerman, Phillip L. 2000. “Domain-Specific Knowledge Ivanoff, Jason, Philip Branning, and René Marois.
as the ‘Dark Matter’ of Adult Intelligence: Gf/Gc, 2009. “Mapping the Pathways of Information
Personality and Interest Correlates.” The Journals of Processing from Sensation to Action in Four Dis-
Gerontology Series B: Psychological Sciences and Social tinct Sensorimotor Tasks.” Human Brain Mapping
Sciences 55(2): 69-84. 30(12): 4167-4186.

Agarwal, Sumit, John C. Driscoll, Xavier Gabaix, and Jeske, Debora and Christian Stamov Rossnagel. 2015.
David Laibson. 2009. “The Age of Reason: Finan- “Learning Capability and Performance in Later
cial Decisions Over the Life-Cycle with Implica- Working Life: Towards a Contextual View.” Educa-
tions for Regulation.” Brookings Papers on Econom- tion and Training 57(4): 378-391.
ic Activity 2009(2) 51-117.
Langenecker, Scott A., Kristy A. Nielson, and Stephen M.
Andrews, Elizabeth C. and Stephen J. Westerman. Rao. 2004. “fMRI of Healthy Older Adults During
2012. “Age Differences in Simulated Driving Stroop Interference.” Neuroimage 21(1): 192-200.
Performance: Compensatory Processes.” Accident
Analysis & Prevention 45: 660-668. Merriam-Webster’s Collegiate Dictionary. 2010. Spring-
field, MA: Merriam-Webster, Inc.
Brookhaven National Laboratory. 1998. “New Study
Connects Brain Chemistry to Old Age’s Most Mund, Iris, Raoul Bell, and Axel Buchner. 2010. “Age
Common Symptoms: Decreases in Motor Skills Differences in Reading with Distraction: Sensory
and Mental Agility Could be Preventable.” Upton, or Inhibitory Deficits?” Psychology and Aging 25(4):
NY. Available at: https://www.bnl.gov/bnlweb/ 886-897.
pubaf/pr/1998/bnlpr030298a.html.
Ng, Thomas W. H., and Daniel C. Feldman. 2013.
Casey, B. J., Nim Tottenham, Conor Liston, and Sarah “How Do Within-Person Changes Due to Aging
Durston. 2005. “Imaging the Developing Brain: What Affect Job Performance?” Journal of Vocational
Have We Learned About Cognitive Development?” Behavior 83(3) 500-513.
Trends in Cognitive Sciences 9(3): 104-110.
Nyberg, Lars, Martin Lövdén, Katrine Riklund, Ulman
Craik, Fergus and Timothy Salthouse. 2008. The Lindenberger, and Lars Bäckman. 2012. “Memory
Handbook of Aging and Cognition: Third Edition. Aging and Brain Maintenance.” Trends in Cognitive
New York, NY: Psychology Press. Sciences 16(5): 292-305.

DeCarli, Charles, D. M. Murphy, M. Tranh, C. L. Pantoni, Leonardo and Julio H. Garcia. 1997. “Cogni-
Grady, J. V. Haxby, J. A. Gillette, J. A. Salerno et al. tive Impairment and Cellular/Vascular Changes in
1995. “The Effect of White Matter Hyperintensity the Cerebral White Matter.” Annals of the New York
Volume on Brain Structure, Cognitive Perfor- Academy of Sciences 826(1): 92-102.
mance, and Cerebral Metabolism of Glucose in 51
Healthy Adults.” Neurology 45(11): 2077-2084. Salat, David H. 2011. “The Declining Infrastructure of
the Aging Brain.” Brain Connectivity 1(4): 279-293.
Heil, Michael C. 1999. “Air Traffic Control Specialist
Age and Cognitive Test Performance.” Report to Salthouse, Timothy A. 2012. “Consequences of Age-
the U.S. Department of Transportation Federal Avia- Related Cognitive Declines.” Annual Review of
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Issue in Brief 7

Schaie, K. Warner and Sherry Willis. 2016. Handbook

of the Psychology of Aging: 8th Edition. Boston, MA:
Academic Press.

Sullivan, Edith V., Laura Marsh, Daniel H. Mathalon,

Kelvin O. Lim, and Adolf Pfefferbaum. 1995. “Age-
Related Decline in MRI Volumes of Temporal
Lobe Gray Matter but not Hippocampus.” Neurobi-
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and D. A. Bennett. 2003. “Terminal Decline in
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APPENDIX
Issue in Brief 9

Table A1. Tests of Cognitive Ability

Test name Format Time to complete Description

The test requires the examinee to transcribe, from
Non-verbal Timed, <90
Digit Symbol Substitution Test memory, a set of symbols corresponding to the
memory seconds
numbers 1 to 9.
Not timed, 5-10 A 30-point questionnaire used to measure
Mini-Mental State Examination Battery
minutes cognitive impairment.
A 60-point multiple choice test in which the
Non-verbal, Timed, 35-40
Raven’s Progressive Matrices subject is asked to identify the missing element
Aptitude minutes
that completes a pattern.
Participants are given words that are presented in
Stroop Interference Task Reaction Timed/reaction certain colors and are asked to say the color of a
word.
Test of visual attention and task switching in
Trail Making Test Non-verbal Timed which the subject connects a set of 25 dots as
quickly as possible while maintaining accuracy.
An IQ test designed to measure intelligence and
Weschler Adult Intelligence Scale Aptitude Timed, 40 minutes
cognitive ability in adults and adolescents.
The task is to match cards according to different
Not timed, 20-30
Wisconsin Card Sorting Test Non-verbal principles – by color, form, or number of shapes,
minutes
without being given these principles.

Source: Authors’ compilation from various sources.

RETIREMENT
RESEARCH

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The mission of the Center for Retirement Research The Brookings Institution
at Boston College is to produce first-class research Syracuse University
and educational tools and forge a strong link between Urban Institute
the academic community and decision-makers in the
public and private sectors around an issue of criti-
cal importance to the nation’s future. To achieve
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© 2016, by Trustees of Boston College, Center for Retirement Research. All rights reserved. Short sections of text, not to
exceed two paragraphs, may be quoted without explicit permission provided that the authors are identified and full credit,
including copyright notice, is given to Trustees of Boston College, Center for Retirement Research.

The research reported herein was performed pursuant to a grant from the U.S. Social Security Administration (SSA) funded
as part of the Retirement Research Consortium. The opinions and conclusions expressed are solely those of the authors and
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