Fewer than one in ten (9%) adults with parents have discussed how finances should be managed if they developed a condition such as dementia. This is despite more than half (53%) saying they would feel comfortable having the conversation, according to new research from Nationwide.
A lack of preparedness means that nearly a quarter of adults (23%) wouldn’t know where to start managing finances if dementia affected someone in their family, with 41 per cent saying their household would be financially unprepared, compared with just over a third (34%) who feel they would be prepared. Women were significantly more likely than men to say they would be unprepared for the financial impact (46% compared with 33%).
The poll, which surveyed more than 2,000 people aged 30 and above with living parents, coincides with the second anniversary of Nationwide and Dementia UK's partnership, which forms part of Nationwide's Fairer Futures social impact programme. Since launching over 8,300 dementia clinic appointments have been booked across more than 250 Nationwide branches.
Through the partnership, specialist Dementia UK Admiral Nurses provide free advice and support to anyone affected by dementia, helping families navigate difficult conversations about finances, care and future planning, understand their options and access support. Combined with support through Dementia UK's Helpline and wider partnership activity, more than 55,000 people affected by dementia have been reached so far. Support is available to everyone, whether they bank with Nationwide or not.
The findings come at a time when dementia is affecting a growing number of families across the UK. An estimated 982,000 people are currently living with dementia and the condition is expected to cost the UK economy £42 billion2 this year alone, with almost two thirds of that burden falling on people living with dementia and their families.
Despite the importance of planning ahead, many families have yet to put basic arrangements in place. A third (33%) said nobody in their immediate family has a power of attorney, while a further 16 per cent were unsure whether one exists. Just 14 per cent have arranged a power of attorney or similar arrangement for themselves.
The research highlights widespread misunderstanding about who can legally make financial decisions when someone loses the ability to manage their own affairs. More than one in five (21%) incorrectly believe a spouse or partner automatically gains control of all finances, while 19 per cent think adult children do. A further 13 per cent believe close family members can automatically access a person's bank accounts.
Only six per cent believe they could afford dementia-related costs without making changes to their finances. Many expect they would need to draw on savings (23%), cut day-to-day spending (22%) or rely on government support (22%). Others anticipate delaying retirement or changing their working patterns to provide care. Just 24 per cent said they would know how to work out who is responsible for paying for care.
People aged 45 to 54 emerged as among the least prepared. Nearly half (45%) said they would be financially unprepared if dementia affected their family, more than a third (37%) had taken no steps to prepare their future financial affairs and just one in ten (10%) had arranged a power of attorney.
Dr Hilda Hayo OBE, Chief Admiral Nurse and CEO of Dementia UK said: “Dementia is a complicated condition which affects everyone in different ways. A diagnosis can be overwhelming and families often do not know where to turn when it comes to accessing support or planning for the future. While it is impossible to be fully prepared for a diagnosis of dementia, tackling tricky conversations around finances and care options early on can help people navigate the challenges dementia brings and make informed decisions with and on behalf of their loved ones."
Charlotte Kensett, Director of Social Impact for Nationwide, said: "Too often, families only start thinking about finances when dementia has already reached a crisis point. Having conversations and putting plans in place earlier can help ensure a person's wishes are understood, reduce uncertainty for loved ones and make managing the challenges ahead that little bit easier. Specialist Dementia UK Admiral Nurses can help families start these conversations and understand the practical steps they can take. We'd encourage anyone affected by dementia to seek support through the Dementia UK Helpline on 0800 888 6678 or an in-branch clinic."
For more information on how to book an appointment visit Admiral Nurse Clinics | Free Dementia Support Appointment - Dementia UK
