Before sharing information regarding the financial abuse among our seniors, I must state that I know, or have known people near 100 years old that have not lost cognitive abilities and remain very sharp, so just realize that this information is a generalized statistical study.
According to new research from Daniel Marson, a professor of neurology at the University of Alabama, Birmingham, adults in their 60s and 70s start to exhibit declines in financial abilities, including a vulnerability to potential telephone fraud, difficulty with making change at checkout and having a harder time at prioritizing bills. Those diminished abilities can become a real struggle when trying to keep up with everyday financial management tasks.
The findings suggest that there are several warning signs that friends or family members can look for in order to give them indications that there may be trouble ahead for this person. An untouched stack of mail may indicate that bills are not being paid and they have fallen behind which is even more of a problem. Calculating a tip at a restaurant or figuring out a deductible on a medical bill could be a sign of cognitive decline. Even a lack of personal hygiene from someone who previously never had an issue with their cleanliness. Overlooking investment risks and focusing on the benefits rather than the risks of potential loss is a problem that may be associated with age.
Research also confirms that people typically live longer than they had anticipated, creating planning problems around their long term health plans, or just having adequate income to live. I have experience with clients that wanted to go for a high risk investment for a big return out of desperation. That desperation opens them up to “get rich quick” schemes that are targeting seniors and their money, and as we all know, there are plenty of crooks and scammers that target elderly folks. Contractors, financial advisors, lawyers and even family members can be the culprits looking to take advantage of the vulnerable. Contractors, financial advisors, accountants and lawyers can be checked out for problematic pasts, but a family member with bad or selfish intentions can be most difficult to recognize.
For those seniors with a spouse, make sure your spouse is aware of what is going on with the investments and household finances that is just a good practice for a number of reasons. For those without a spouse or partner, a sibling, son, daughter or close friend may be honored to have you “consult” regarding day to day financial decisions.
The good news is that aging is not all bad. We often times gain wisdom and increased pattern recognition as we age. Those who stay physically and mentally active may hold off the effects of aging for an indefinite amount of time.
