How to avoid financial vulnerability at old age?

How to avoid financial vulnerability at old age?

The loss of the ability to manage one’s own money is not only a problem for people with dementia, it affects older people with health problems, who feel alone or who are in situations that make them vulnerable, such as residing in accommodations that do not have ethical behaviour, lack of preparation, ignorance of new technologies, etc.

Money management: Can it turn out to be a mess?

 Do not think that it is a risk run by people in poverty. It can happen to anyone in a situation of vulnerability. In a recent study, the problem is named with the term “financial vulnerability associated with age”. These terms are intended to establish a pattern of behaviours related to money that can lead the elderly person to a loss of resources that put their quality of life at risk. Not only has the aging of the brain or the loss of faculties led to impoverishment. The financial exploitation of the elderly is a widespread form of abuse. These two factors are together lead to situations of helplessness, loss of quality of life, health problems and, in extreme cases, abandonment.

Factors specific to age include physical, cognitive and emotional impairment. Alterations in vision, hearing, and mobility, incapacitating illnesses, isolation due to loss of mobility, all influence to accelerate the cognitive deterioration that prevents older people to manage their assets or money autonomously. Moreover, when an older person begins to make obviously wrong economic decisions, the environment should be alerted as it can be an indication of dementia. Thus, this will only lead you to have haphazard financial management and can be great trouble in the future. To save your money there are certain things that you need to take care in order to have good financial support in the future.

How to avoid this problem and get a good financial plan?

•    In order to guarantee a good quality of life for the elderly person, it is necessary that they make decisions when they still have the capacity to do so and that it is they who designate who will make the decisions when they cannot.

•    Extending a power of attorney and making a will are actions that prevent situations of abuse and neglect.

•    Also, plan the future and say it to those close to you, such as when to enter a nursing home, what type of residential centre and where it should be or the choice of treatment against diseases.