Almost one in three Australians aged 50 and over are unsure where to find information or support if changes in cognitive health affect their ability to manage their finances, according to new national research.
The findings, released by Aware Super and the Council on the Ageing (COTA) Australia, show that around 2.9 million Australians may be entering later life without a clear plan for who would help manage their money if dementia or another health conditions affected their decision-making.
While 69% of Australians aged 50 and over are confident they could find information to prepare for cognitive changes and financial decision-making, nearly one-third do not know where to turn.
The research also found 39% are concerned changes in cognitive health may affect their ability to manage their finances, rising to 43% among Australians aged 50 to 66.
Aware Super CEO Deanne Stewart said the findings show Australians need to think beyond how much they will have in retirement, and also plan for how their money will be managed if their cognitive health changes.
“Just as Australians prepare financially for retirement, they should also prepare for the possibility that one day they may need help managing their affairs. A simple plan today can provide certainty and peace of mind for tomorrow,” Ms Stewart said.
According to Dementia Australia, an estimated 446,000 Australians are living with dementia in 2026, making it one of the nation’s most significant health changes. This number is projected to rise to more than 1 million by 2065.
“Whether it is dementia, a stroke or another health condition, losing the ability to make financial decisions can make people more susceptible to scams or poor financial decisions, so putting trusted people, legal arrangements and support in place early can make a huge difference,” said Ms Stewart.
COTA Australia Chief Executive Officer, Patricia Sparrow, said planning ahead is about protecting people’s independence, preferences and dignity.
“Most people want to remain in control of their own financial decisions for as a long as possible. Being supported to plan ahead is important to ensure our individual needs and wants are needs are kept front and centre.
“Having trusted people and the right legal arrangements in place early can make it much easier to ensure decisions reflect what matters most to you.”
The State of the Older Nation report found that most older Australians said they do have someone they trust: 78% said they have a person who could make financial decisions on their behalf if needed, and 82% are confident that person would act in their best interests. But 13% said they do not have a trusted person they could rely on if they lost decision-making capacity.
Ms Stewart says practical steps such as appointing an Enduring Power of Attorney, updating beneficiary nominations, documenting financial wishes and having a valid Will as early as possible can help ensure a person’s affairs are managed in line with their wishes if circumstances change.
“We’ve been encouraging our members to make a beneficiary nomination online and utilise our partnership with Safewill, which gives eligible members access to online Wills at no extra cost. These are simple steps that can make a real difference later on.”
Aware Super also offers members super and retirement help without paying extra^, as well as help with the Age Pension, which can assist older Australians understand their options and access support if managing retirement finances becomes difficult.
7 steps to help protect your finances
- Appoint an Enduring Power of Attorney.
- Choose a trusted decision-maker and talk to them about your wishes.
- Update your super beneficiary nomination.
- Document your key financial preferences.
- Keep a secure record of accounts, assets and important documents, and watch for unusual transactions or scam warning signs.
- Talk to family early so there is clarity before a crisis.
- Seek financial and legal advice before problems arise.
