Protecting Retirement Assets Against Financial Elder Abuse

Protecting retirement assets through analysis of various topics, such as time horizon, income needs, risk tolerance, and more, is often best discussed with a wealth advisor acting under fiduciary standards. A prudent wealth advisor closely monitors their clients’ normal activities and actions to help safeguard against potential elderly exploitation of assets. Elderly exploitation, commonly referred to as elder abuse, extends to all aspects of a person’s life and, unfortunately, financial elder abuse has risen in recent years and continues to do so. As clients age, the protection of their assets from others extends to those within their closest inner circle. With financial elder abuse taking many different forms, and with the advent of the internet, older generations are even more at risk. The United States’ largest generation, the baby boomers, are either well into retirement or just entering it. By being aware, being involved, and preparing for decreasing capacity through the creation of an estate plan, all generations can help mitigate the risks they face.

Although 1 in 24 people have abuse reported, it is estimated a staggering one in ten people potentially fall victim to financial elder abuse. Being aware is the first step to safeguarding ourselves and our loved ones. With victims age 60 and older estimated to lose over $28billion on an annual basis, understanding that the issue extends beyond financial records is key. The behaviors exhibited by an individual can be a crucial indicator of abuse. Is the individual withdrawn or agitated without reason? Is the individual’s personal hygiene lacking? Is their spending erratic? Has someone new entered into the scene recently? With any unusual change in someone’s behavior, it is prudent to ask questions and show concern. Asking questions in an indirect manner is best as these can be difficult topics for some to digest. Keep in mind that diminishing capacity could be the cause for some changes in behavior, but is also often the reason someone may be targeted. As a person experiences diminishing capacity, feelings of embarrassment and loneliness may lead to denial of the topic.