When we think about elder abuse, our minds often turn to physical mistreatment or neglect.
However, one of the most pervasive and insidious forms of abuse is financial exploitation.
Shockingly, family members, often the very people elders trust most, are often the perpetrators. Why is this happening, and what can we do to protect our loved ones?
Financial Elder Abuse
Consider this: the National Council on Aging (NCOA) estimates that financial exploitation causes seniors to lose approximately $28.3 billion annually [^1]. This staggering figure doesn’t just represent numbers; it reflects the shattered trust and security of thousands of elderly individuals.
Family dynamics play a significant role. Relatives may feel entitled to the elder’s assets or believe they are simply ‘borrowing’ funds. In other cases, they may be struggling with financial difficulties themselves and see the elder’s resources as a lifeline.
According to the University of Wyoming, 90% of elder abuse is perpetrated by family members, with 50% by adult children and 20% by spouses [^2]. Elder financial exploitation is the third most frequent form of abuse, after neglect and emotional abuse. Recent statistics indicate that 30 to 40% of elder abuse involves some form of financial exploitation [^2].
Do we, as a society, understand the full impact of these actions on our elders’ lives and well-being?
Awareness and Prevention
It’s crucial to ask ourselves: Are we vigilant enough to recognize the signs of financial elder abuse? Are we prepared to have difficult conversations with our family members about the ethical treatment of our elders? We need to foster an environment where transparency and accountability are paramount.
One effective way to protect our elders is by incorporating Long-Term Care Insurance (LTCI) into our family’s financial planning. LTCI can provide a safety net that ensures elders have access to necessary care without depleting their savings, which can reduce the temptation for family members to exploit their resources.
Additionally, having LTCI can help cover the costs of professional care, reducing the reliance on family members who might be struggling financially themselves.
Financial elder abuse by family members is a silent crisis that demands our attention. By raising awareness, encouraging open dialogue, and planning with solutions like Long-Term Care Insurance, we can help protect the financial security and dignity of our aging loved ones.
[^1]: National Council on Aging. Financial Elder Abuse Statistics. Published 2021.
[^2]: University of Wyoming. Elder Financial Exploitation. Published 2022.