One in nine Americans aged 65 or older are living with Alzheimer’s disease – and the costs associated with the diagnosis and treatment can put a tremendous strain on a family’s financial security.
During Financial Wellness Month, the Alzheimer’s Association is offering tips for managing money for the 150,000 Virginians with Alzheimer’s or other dementia and their caregivers.
Tips 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 (savings, insurance, retirement benefits, government assistance, VA benefits, etc.). A financial planner or 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 Brooke Gill, program manager for the Central and Western Virginia Chapter of the Alzheimer’s Assocation. “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.”
The 2022 Alzheimer’s Association Alzheimer’s Disease Facts and Figures report found:
- In 2021, the lifetime cost of care for a person living with dementia was $377,621.
- Average out-of-pocket costs for health care and long-term care services not covered by Medicare, Medicaid and private insurance is nearly $10,000 annually for people living with Alzheimer’s or other dementias.
- 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.
For more information on financial planning, visit alz.org
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Crystal Graham
