Delegation of Financial Decisions in Older Couples : Experimental Evidence

We examine delegation of financial decision-making in Australian couples aged 60 years and above. Men show extremely low likelihood of delegating to their spouse. The odds of women delegating to their husbands are nearly 25 times higher than that of men delegating to their wives. This gender difference is not explained by the difference in the financial competence of the spouses. Individuals with authority to revoke delegation (or delegate selectively) tend to delegate more often and earlier compared to those who can only make irrevocable delegation. Our findings suggest that desire for control overrides efficiency considerations in financial decision-making within older households