Age differences in preferences through the lens of socioemotional selectivity theory

The ways that individuals experience time, specifically as it relates to prioritizing the present versus the future, have played foundational roles in economics and psychology.

Traditionally, both disciplines have viewed individuals’ time preferences as time-independent and stable. In this paper, we examine principles such as time consistency and rational expectations through the lens of socioemotional selectivity theory. We argue that preferences change as personal time horizons shrink, and rewards related to emotional meaning in the present are prioritized over rewards that play out in the future. This manifests in older individuals’ preferences for emotionally meaningful experiences over activities that promote learning and exploration. Because goals direct cognitive resources, individuals with shorter time horizons also direct cognitive resources and attention away from negative information and towards positive information. Shifting goals and changes in cognitive preferences have wide-ranging implications for aging research and policy development.