Seniors aged 65 and above will make up 18 percent of the nation’s population by 2030. Currently, Americans over the age of 50 account for 77 percent of personal financial assets in the United States, according to the Securities Industry and Financial Markets Association.
While this group of investors owns a disproportionate share of the nation’s personal wealth, a high percentage face a greater risk for cognitive decline and financial exploitation.
“It’s not always Alzheimer’s or dementia,” said Lisa Bleier, managing director and associate general counsel with SIFMA. “In some instances, it can be a simple slip in financial acumen that positions a senior for abuse.”
One in five mature Americans have been victimized by financial fraud, and seniors lose at least $2.6 billion annually to financial exploitation, according to SIFMA. Elders who lack frequent human interaction are at risk because they could potentially open the door to a fraudster while in search of companionship, Bleier told Care.com. However, those who have a social network of trusted friends and family can help mitigate that risk.
“The more robust the social network around the senior, the more protected they will be because they are less likely to grab on to someone for assistance who turns out to be a savvy scammer,” said Marin Gibson, managing director and associate counsel of SIFMA’s State Government Affairs team.
Members of an elder’s social network can include neighbors, family physicians, caregivers, bankers, attorneys, friends, and extended family members.
“When members of a social network pay attention, a social network acts as a deterrent against scammers targeting an aging relative,” Bleier said.
In some instances, an aging parent may not need a caregiver for a ride to doctor’s appointments, for example, but rather for assistance with counting money or balancing a checkbook.
“The first function that ceases in aging, even in the healthiest (person), is executive, which includes finances,” Gibson told Care.com.
Utility companies and other creditors often allow more than one name to be listed on the bill, like electricity or cable.
For example, in its Third Party Program, ConEd offers the ability to choose a relative, friend, or organization to receive a notice when a bill is overdue and electric or gas service might be turned off.
“The adult child would then be notified of any billing or payment problem,” Gibson said.
The third party is not responsible for paying the bill but is called on to help resolve a payment problem.
“There are retirees who are on their own, leading independent lives in a healthy manner, and yet they have this one difficulty in the financial area,” Gibson said.
Whether it’s paying a bill, calling by phone daily, or meeting for lunch once a week, neighbors, relatives, and family friends can act as a safety net for senior citizens while offering what looks like mere companionship.
