Navigate financial challenges of dementia

January is Financial Wellness Month and there is help for those impacted by dementia.

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DAYTON — 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 the age of 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 economical 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 percent) 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 own savings or retirement funds.

* Nearly two out of three people incorrectly believe that 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 Northwest Ohio Chapter offers a free online education program, “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 back-up agent for the person’s power of attorney and consider designating responsibilities to more than one person.

“Many caregivers experience financial problems because they have to reduce their hours or take time off work,” said Dayna Ritchey, programs director for the Alzheimer’s Association Miami Valley and Greater Cincinnati Chapters.

“As the disease progresses, caregivers will need to pay for services or support for the person living with Alzheimer’s. Financial literacy is especially important for caregivers, because it provides them with the knowledge and skills needed to better support themselves and others.”

For more information on financial planning, visit: Plan for Your Financial Future or alz.org. The Miami Valley Chapter offers free monthly education programs, care consultations and local caregiver support groups. Contact the Alzheimer’s Association Miami Valley Chapter at 937-291-3332 to schedule a care consultation and be connected to free local resources.

There are 236,200 Ohioans 65 and older living with Alzheimer’s disease, according to the Alzheimer’s Association 2024 Alzheimer’s Disease Facts and Figures. More than 4,900 Ohioans died from Alzheimer’s in 2021. A total of 414,000 Ohio caregivers provide 624 million hours of unpaid care each year valued at over $11.4 billion.

To learn more about Alzheimer’s or other dementia and to access free support and resources, visit alz.org/dayton or call the Miami Valley Chapter at 937-291-3332 or the 24/7 Helpline at 800-272-3900.