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Some American Adults With Dementia Face Difficulty Managing Finances, Center For Retirement Research Reports

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Some American Adults With Dementia Face Difficulty Managing Finances, Center For Retirement Research Reports

Thirteen percent of adults with dementia do receive help managing their finances, according to a brief from Boston College’s Center for Retirement Research. Seniors with dementia may face difficulties while balancing checkbooks, paying bills, managing 401(k)s and Roth IRAs, and other financial tasks.

At present, over 5.5 million Americans suffer from dementia, of which 715,000 might not be getting help with their finances. As the Baby Boomer population ages, they might need to receive more help from their kids.

But, as younger Americans choose to have fewer kids, the next retiring generation may not have access to the same level of assistance. It's critical to think about a solution to a safe and comfortable retirement.

The Findings

The Center for Retirement took data from the National Health and Aging Trends study to determine if people with dementia received help with managing money. They used a sample of 8,245 people. It placed individuals in categories such as “no dementia”, “possible dementia” and “probable dementia”. This data was then analyzed to study how they manage simple money affairs, such as writing checks, depositing or withdrawing money etc.

It revealed that 87 percent received help with simple financial tasks, like managing checking accounts, savings accounts, and 401(k)s. The majority of the help being from family members such as spouses and children. About 5.5 percent of individuals with dementia faced financial hardship - not having enough resources to cover food, utility bills and mortgage payments. It also revealed that those who received help were 9 percent less likely and those without were 7 percent more likely to face financial hardships.

As a significant portion of the U.S. population reaches retirement and the risk for dementia increases with age, it's important to have assistance in the form of an informal or formal caregiver. Have a plan in place with trustworthy worthy individuals as authorized representatives to handle financial affairs. In the end, it will help a family member or loved one avoid financial hardships in old age.

Posted-In: Education Personal Finance General Best of Benzinga

 

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