Supporting financial decision-making as clients age
Have you ever misplaced your keys or forgotten a name? We all have memory lapses from time to time. But as people age, these lapses can become more serious, potentially leading to poor financial decisions and greater vulnerability to fraud. While you can’t control how your clients’ cognitive abilities change as they get older, you can help them take proactive steps today to protect their money. Let’s explore how you can incorporate this sensitive issue into your longevity-planning conversations.
Key takeaways
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Five ways financial professionals can support aging clients
Financial professionals play a vital role in helping older clients protect their financial well-being as their decision-making abilities shift over time. Planning today for possible cognitive challenges can make those transitions smoother and less stressful. Here are five practical ways you can support clients, along with tips for weaving these ideas into your day-to-day practice.
1 Reinforce the benefits of having a trusted contact
Even though you talk with clients about naming a trusted contact when they open their accounts, chances are some don’t add one, or their circumstances may have changed. Consider making trusted contacts a regular part of your quarterly or annual reviews. These meetings are a great opportunity to reinforce the value of this account feature—it gives you someone to reach out to if you can’t get in touch with your client or you’re concerned about possible fraud. You can also use this time to address any concerns they may have, such as privacy and account access, or to verify that the person listed is still the correct contact. Sharing a cautionary tale of someone who didn’t have a trusted contact may help nudge reluctant clients to name one.
2 Encourage a durable financial power of attorney
Similarly, it’s important to talk to clients about naming a durable financial power of attorney (POA) while they still can. Unfortunately, it’s a topic that many people tend to avoid. In fact, only 11% of U.S. adults have a financial POA.1 Consider partnering with a local estate planning attorney who can:
- Help clients understand what a durable financial POA can and can’t do
- Explain the difference between a regular and durable POA—and why it matters
- Describe the benefits and any potential drawbacks
- Complete the necessary legal documents
Making the process as simple as possible may inspire your clients to take action.
3 Educate clients about AI and fraud risks
With advances in AI, it’s getting tough for the average person to recognize scams, let alone someone experiencing cognitive decline. That’s one reason older adults are often the prime targets for these schemes. In 2025, individuals 60 and older lost more than $7.7 billion due to online elder fraud, and nearly half of it was investment-related.2 You likely already talk to your clients about cybersecurity. Consider expanding those efforts with workshops tailored specifically to older clients to help them become more aware of current risks. Age-based sessions allow you to focus on their unique needs and comfort level, especially since many may not feel tech-savvy.
Potential topics include:
- Basics of AI
- Common scams that target older adults, such as the grandparent scam
- Tips for identifying and protecting themselves from fraud
- What to do if they fall victim to a scam
You might also consider inviting someone from law enforcement to speak to make the discussions even more impactful.
4 Add account alerts
Adding alerts to help protect against fraud seems like a no-brainer to us in the industry. But for clients, it’s just another thing that they’ll get around to doing later. At your next client meeting, help them cross it off their to-do list by guiding them through the process. You could ask them to sign in to their investment, retirement, and bank accounts, then help them update their text and email alerts.
5 Watch for suspicious account activity and behavioral changes
You’re one of the few people who truly understand your clients’ financial situation, investment preferences, and goals—and what their typical behavior is. This puts you in a unique position to spot diminished financial capacity, possible financial elder abuse, or fraud. Your firm likely offers training on identifying potential red flags and, possibly, the Senior Safe Act. If something raises your concern, be sure to follow your firm’s reporting policies and procedures.
Potential signs of cognitive decline or financial fraud
- Repeatedly missing meetings or asking the same questions
- Significant confusion around investments and transactions
- Having difficulty managing bills and investments
- Large, unexpected withdrawals
- Sudden change in contact, bank, or beneficiary information
- Inconsistent signatures on documents
- New authorized individuals on the account
Caring for your clients—it’s what you do
Most likely, you became a financial professional because you want to help people reach their goals and enjoy the life they imagined. Part of that involves making sure your clients of all ages take steps to protect their hard-earned savings and investments. With increasing life expectancies, this is especially important for older clients, as cognitive challenges can arise over time. Helping them plan for this possibility today shows that you’re looking out for more than their money—you’re looking out for them.
FAQs
What’s the Senior Safe Act and why does it matter to financial professionals?
The Senior Safe Act is a federal law designed to help financial professionals identify and report suspected financial exploitation of older adults. It offers certain legal protections when concerns are reported in good faith and in accordance with training guidelines. This matters because financial professionals are often among the first to notice unusual account activity or behavioral changes that may signal fraud, scams, or diminished financial capacity.
What are some signs of cognitive decline that can affect financial decision-making?
Cognitive decline can show up in ways that directly affect a person’s ability to manage money and make informed financial decisions. Common warning signs include repeatedly asking the same questions, missing meetings, confusion about investments or transactions, difficulty paying bills, and trouble managing accounts. Financial professionals may also notice sudden changes in financial behavior that seem inconsistent with a client’s long-term goals or typical decision-making patterns.
What’s a trusted contact person in financial planning?
A trusted contact is someone a client authorizes a financial professional to call if there are concerns about the client’s well-being, potential fraud, or the inability to reach the client. Unlike a power of attorney, a trusted contact generally doesn’t have authority to make financial decisions or access accounts. Instead, they serve as an additional layer of protection, helping financial professionals address potential problems before they become more serious.
Can cognitive decline increase susceptibility to financial scams?
Yes. As cognitive abilities change, it can become harder for someone to spot red flags, question unusual requests, or make sound financial decisions. This can leave older adults more vulnerable to increasingly sophisticated scams, including those powered by AI. Even small lapses in judgment can have serious consequences, from financial losses to long-term damage to retirement savings.
1 “2026 Estate Planning Report,” trust&will, 6/29/26. 2 “2025 Internet Crime Annual Report,” Federal Bureau of Investigation, 4/16/26.
How can we make a longer retirement better?
Longevity is about balancing health and wealth to help make those extra years better. The implications are shifting the way we think about retirement.
Important disclosures
Important disclosures
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made.
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Intended for financial professionals