Poll Highlights Risk To Elderly Americans Of Being Financially Abused

Tom Burroughes

3 April 2017

More than half of financial advisors in the US have seen or suspected that an elderly client has been abused over money at least once, according to a survey of 591 advisors by InvestmentNews. Alarmingly, of those who suspected abuse, 56 per cent did not report it, the publication said.

The issue is particularly serious because as populations age, and the Baby Boom generation retires and transfers wealth, a significant chunk of the population in developed nations such as the US is vulnerable to fraudsters. Another issue is ensuring advisors are alert to issues around cognitive health. In 2015, for example, research by Fidelity showed that three-quarters of financial advisors worked with clients with diminished mental capacity, while one in five advisors has encountered financial abuse among their aging clients.

Cerulli Associates has also revealed that aging client bases will create challenges for advisors, as 57 per cent of their clients are above the age of 60

While the IN story was about the elderly US population in general , the relevance to those serving high net worth individuals is obvious.

The publication cited a study by the state of New York saying that about five million older Americans across the country are financially exploited each year.