Research on Decision-Making in the Aging Brain Receives Funding from Netspar and Instituut Gak

Challenges and AI-Driven Solutions for Pension Planning As the global population rapidly ages, understanding how age-related cognitive decline affects decision-making processes is crucial, particularly in key areas such as pension planning and financial decision-making. Brain and cognition researcher Dr. Muhammet Sahen from Erasmus University Rotterdam has received a grant of €350,000 from the innovative research fund on pensions and aging provided by Netspar and Instituut Gak.

Projectleader Muhammet Sahan: "We are very pleased with this grant, as it allows us to conduct fundamental research on brain and cognition with direct societal impact. This project explores how the aging brain influences risky decision-making in pension contexts and how AI-based tools can serve as decision-support systems. We hope to give valuable insights back to society and contribute to more informed pension decisions."

Impact of Aging Brains on Decision-Making

The Netherlands' population aged 65 and above 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 to navigate. This is because aging significantly impacts the prefrontal cortex, which is crucial for making complex decisions, especially under uncertain conditions. This project examines how the aging brain influences pension-related decision-making by employing a neuroscientific approach to uncover underlying psychological processes and evaluate AI tools as potential solutions to decision-making challenges. Unlike survey-based studies, this project is experimental, focusing on psychological factors such as cognitive load and emotional stress in pension choices. The project is divided into two themes.

Theme 1 focuses on the neuropsychological mechanisms underlying pension-related decisions, which often trigger stress and thereby impact choice behavior.

Theme 2 explores the impact of AI tools on reducing cognitive (choice complexity) and emotional burdens (choice stress) associated with pension-related decisions. We will recruit participants aged 58 and above, 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 challenges in decision-making. 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.

Original press release by Netspar & Instituut Gak.

• Erasmus School of Social and Behavioural Sciences