Aging and Finance. A Literature Review on Risk Profiles, Decision-Making, and Investment Returns

As population aging accelerates worldwide, societies face profound economic, social, and financial challenges. This paper provides a comprehensive review of the literature on the financial vulnerability of older adults, with a particular focus on Italy, where regional disparities exacerbate the issue. Drawing on interdisciplinary sources, the study examines the determinants of elderly financial behaviour, including risk tolerance, cognitive decline, financial literacy, and exposure to fraud. The paper also analyses the financial products and services currently available to older consumers and evaluates the extent to which they meet their specific needs. In its final section, the paper explores the intersection between aging, Corporate Social Responsibility (CSR), and Environmental, Social, and Governance (ESG) practices, arguing that inclusive financial services for the elderly can enhance both ethical responsibility and strategic positioning for financial institutions. The findings highlight the urgency of policy reforms and the need for tailored financial instruments that promote financial security and social inclusion in aging societies.