The prevalence of financial abuse among older Australians requires greater awareness and early action to reduce its occurrence and severity, according to Equity Trustees.
The specialist trustee company noted national data collated by the Australian Institute of Health and Welfare found one in six, or nearly 600,000, older Australians had experienced some form of elder abuse each year, of which nearly 84,000 experienced financial abuse where their funds were improperly or illegally accessed.
Equity Trustees senior estates and trust solicitor Suzie Willis said despite the risk factors, there were practical early‑intervention and prevention strategies that created safer decision‑making for older people.
“Sadly, elder abuse is often perpetrated by someone the victim knows, with around half of the cases involving family members,” Willis said.
“Financial abuse can start gradually and often goes unnoticed until significant damage has already been done. Once confidence is lost, it can be very difficult for someone to regain independence.
“Simple steps, such as appointing an enduring power of attorney and carefully selecting who will make decisions on your behalf, can significantly reduce exposure to abuse.
“It’s about more than having someone you trust. The strongest protection is when you have the right structures and oversight in place well before they are needed, including clear legal and financial arrangements.”
She noted where an individual had concerns about who they could rely on, professional trustees could step in and play a key role in determining when any money was released, while also considering ongoing costs, such as medical care, daily living support, housing and social participation.
Older Australians, or their family and friends, who are concerned about any care they receive should speak up if they feel something is wrong, even if they raise social and legal issues, and be aware support is available from community groups, lawyers, the police and the government, she said.
“Ultimately, protecting independence later in life comes down to planning early, staying connected and staying alert to the warning signs. We all have responsibility to care and advocate for older people, especially if they are unable or unwilling to speak for themselves,” she noted.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason