Conversations About Elder Needs Aren’t Happening, According to Wells Fargo Survey
57 percent of older Americans say having a conversation about later-life needs is a low priority (even among those 80+), and a third have never discussed it with family
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According to the 2018
“Some older adults may struggle to see the need to plan for issues they may face as a result of aging. They spend a lifetime preparing for retirement, but then fail to plan to see themselves through retirement,” said
The 2018
Aging and money are difficult to talk about
Older Americans may be posing a threat to their nest egg by shying away from conversations about aging. More than one-third of older Americans who are parents say it is difficult to talk with their children about challenges they will face in later years, including one in four (24 percent) who say it is difficult to talk about money and finances. Adult children find such conversations even more difficult, with one in three (34 percent) saying money and finances are difficult to discuss.
The biggest reason most parents and children are not yet talking, however, is that they see no urgency, especially among parents (even among those age 80+). More than half of older parents (57 percent) say having a conversation about later-life needs is a low priority, and a third have never discussed it with family. Adult children are equally unwilling to have these conversations because it is either a low priority (32 percent) or would cause conflict (23 percent).
Even so, four out of five adult children say they want their parents to plan more so that they do not have to intervene. This contrasts to the 35 percent of older Americans who say that too much planning gets in the way of enjoying life.
People who plan are happier
Older Americans who have talked with their families about later-life needs and have estate and planning documents in place are happier. In looking at eight planning behaviors measured in the survey, 40 percent of those who have done between six and eight of the activities describe themselves as very happy; this contrasts to 22 percent of those who have done none of the activities or just one or two.
“While planning for old age isn’t a topic individuals particularly enjoy, it often provides greater confidence and comfort in knowing that they’ve prepared for potential later-life needs,” Long said. “That confidence translates into greater happiness because it’s one less thing they, or their children, need to worry about.”
Gaps in planning and protection
Despite the positive potential impact of planning, many older Americans do not have important estate and health documents in place. While three-quarters of older Americans (74 percent) report having a written will, many fewer report having other legal and financial documents:
- 60 percent have an advance healthcare directive.
- 59 percent have a power of attorney for healthcare.
- 48 percent have a power of attorney for financial matters.
Having documents in place does not necessarily mean they are current. One in six report their documents are out of date.
Scams and financial abuse: “It won’t happen to me”
Older Americans are targeted for scams, often because they have accumulated significant wealth or they are vulnerable because of isolation and/or cognitive or physical decline. And while older Americans recognize the prevalence of elder exploitation and scams, few say they believe they will fall victim themselves; as a result, key protections are not in place.
Nearly all older Americans (98 percent) say that older people are susceptible to scams, as do 98 percent of adult children. But only one in ten say they are susceptible to scams, and only one in four (24 percent) worry about it. Self-assurance is a driving factor of this sentiment, as four out of five (81 percent) of older Americans say they are confident they will not be scammed out of their money as they get into their later years.
This assurance is not one-sided. While adult children are far more likely to say their parents are susceptible to scams (38 percent), three out of four (75 percent) also say they are confident that their parents will not fall victim.
Of even greater concern is the misunderstanding of who targets seniors. Although nearly half of older Americans (48 percent) say there are family members they would not trust with their money, 68 percent say strangers are the most likely perpetrator of financial exploitation, followed by hired help (24 percent). Fewer than one in ten (9 percent) say that family members are the most likely perpetrators, despite family members being among the most common perpetrators1.
“Unlike strangers, family members don’t have to gain access and establish a relationship with the victim; they are already positioned to exploit,” said Kez Wold, associate commissioner for
Even among seniors who are aware of potential financial abuse, the majority of older Americans do not have protective measures in place to guard against potential threats:
- 11 percent have alerts of large transactions sent to others.
- 11 percent keep their checks or credit cards locked away.
- About a third (30 percent) say they have a “trusted contact” on file with their financial institution for protection against financial scams or exploitation.
- Just over a third (35 percent) do not check their credit report annually.
- Two-thirds sign documents without having others review them first.
- Fewer than half (46 percent) use automatic bill pay so others are not writing checks.
Helping protect seniors
As concerns about elder financial abuse and exploitation rise,
View the
Along with the company-wide actions noted above, in 2014
Prevention as a defense
There are a number of actions individuals can take to protect themselves from elder financial abuse and exploitation:
- Talk with trustworthy family members about your financial plans.
- Update and have legal documents in place, such as wills, an advance healthcare directive, and powers of attorney for financial matters and for health care.
- Put in place protections such as signing up for direct deposit, annual credit report checks, automatic bill pay, automatic alerts of large transactions sent to a trustworthy individual, and keeping checks and credit cards locked away.
- Avoid isolation through social activities.
“Putting safeguards in place and engaging in a transparent, open dialogue will be critical in protecting the dollars older Americans have worked hard to accumulate,” Long said. “In some cases, their livelihood may depend on it.”
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