Plan ahead to avoid financial, health care mistakes later in life

The concern is that declining financial and health literacy makes older adults “vulnerable to mistakes that significantly impact their well-being,” wrote study authors Patricia Boyle, Olivia Mitchell, Gary Mottola and Lei Yu.

The study fits into a wider literature that offers a powerful case for older people to get their estate in order while mentally capable of coping with major life decisions.

In practical terms, estate planning matters, including writing a will and establishing durable power of attorney and health care proxy. Building a trusted circle that can step in if and when capacities start diminishing is also important. The personal finance mantra “keep finances simple” is a useful framework.

Early planning pays off, especially for our loved ones.

Chris Farrell is senior economics contributor for “Marketplace” and a commentator for Minnesota Public Radio.