Financial wellness key in dementia care

During Financial Wellness Month this January, the Alzheimer’s Association is encouraging individuals and families to make financial plans that will create some security in preparing for an unexpected crisis of caring for someone with Alzheimer’s or other dementia.

One in nine Americans aged 65 and older are living with Alzheimer’s disease – that’s nearly 7 million Americans across the country and 236,200 in Ohio.

Dementia not only takes a tremendous physical toll on diagnosed individuals, but the costs associated with the disease can be overwhelming and put a huge economic strain on families. Disease-related costs can jeopardize a family’s financial security, and many families and caregivers make enormous personal and financial sacrifices.

The 2023 Alzheimer’s Association Alzheimer’s Disease Facts and Figures report found:

• In 2022, the lifetime cost of care for a person living with dementia was $392,874.

• In 2021, dementia caregivers bore nearly twice the average out-of-pocket costs of non-dementia caregivers ($12,388 versus $6,667).

• Nearly half (48%) of care contributors must cut back on their own expenses – including basic necessities like food, transportation, and medical care – to afford dementia-related care, while others must draw from their savings or retirement funds.

• Nearly two out of three people incorrectly believe Medicare helps pay for nursing home care or are unsure whether it does.

To help families navigate these and other financial challenges, the Alzheimer’s Association offers a free online education program entitled “Managing Money: A Caregiver’s Guide to Finances.” Tips from the program include:

• Plan early. There are many benefits of planning early when it comes to your finances – both for the caregiver and the person with the disease.

• Start a positive discussion about finances. Bring in trusted family members or close friends for a discussion about what the person with the disease wants for the future.

• Avoid financial abuse and fraud. Individuals living with dementia have a greater risk of becoming victims and may struggle with making good financial decisions.

• Organize your finances. Conduct an inventory of your financial resources (such as savings, insurance, retirement benefits, government assistance, VA benefits). A financial planner or an elder care attorney can help.

• Create a backup plan. Designate a trusted backup agent for the person’s power of attorney and consider designating responsibilities to more than one person.

“We know that caring for a person living with Alzheimer’s or other dementia can have a devastating effect on the family’s overall financial health,” said Pam Myers, senior director of programs for the Alzheimer’s Association’s Northwest Ohio and Central Ohio chapters. “As this is a progressive disease, the demands of caregiving will increase, including the cost of care. This program provides practical tips and hands-on worksheets on holding conversations about finances and creating a balanced monthly budget. These things are really important to reduce caregiver stress and reduce fear about the future.”

For more information on financial planning, visit alz.org.

Submitted by the Alzheimer’s Association.