Photo: Junior REIS
Many elderly people struggle to manage their finances as they get older, so if you have a parent, grandparent, or any other loved one who is struggling to keep on top of their money, it is important that you step in to ensure stability and security at this stage in their life. Of course, this is not an easy process and can be a sensitive topic, so this post will show you how to help.
Initiate Open & Empathetic Conversations
First, you need to have an open and empathetic conversation with them. As we mentioned, this can be a sensitive topic, so you want to discuss financial matters in a respectful and understanding manner. Be sure to acknowledge their desire for independence while expressing your concern for their well-being. You should have these conversations in private and somewhere they feel safe and comfortable.
Simplify Daily Financial Management
You can begin helping them by simplifying their day-to-day financial tasks. This can include things like setting up direct debits to automate payments, consolidating bank accounts, downloading mobile banking apps onto their smartphone, and collecting and organising any important financial documents that they have.
Establish Legal & Formal Financial Agreements
You should also consider setting up formal arrangements to manage your relatives’ finances, especially if they face cognitive challenges. This can involve establishing a Lasting Power of Attorney (LPA) or becoming a Department for Work & Pensions (DWP) appointee. Obviously, these are big decisions and should not be made lightly. It is a good idea to speak with a solicitor who specialises in law for the elderly and vulnerable - they will be able to advise to ensure that the elderly person’s best wishes are fulfilled.
Protect Against Financial Scams & Abuse
Older adults are frequently targeted by financial scams and may also be vulnerable to financial abuse by those around them. These are both serious and growing issues, so it is vital that you take steps to ensure that they are protected. This will involve helping them recognise common scam tactics, such as phishing emails or cold calls, and encouraging the use of call blockers and secure passwords. It is helpful to encourage them to come to you if they are ever unsure. You should also look out for signs of financial abuse, which include:
- Unexplained transfers and withdrawals;
- Sudden shortage of money;
- New accounts;
- Inability to pay bills;
- Changes in bank accounts.
Final Thoughts...
Many elderly people struggle to keep on top of their finances as they get older, particularly with the rise of mobile and online banking. As a loved one, you will want to do everything you can to support them to ensure that they are comfortable and secure in this stage of their life. Hopefully, this post will help you step in and take steps to protect them and ensure that they remain financially comfortable.
