As America’s population ages, financial advisers are increasingly tasked with recognising early signs of dementia and helping clients navigate financial vulnerability, fraud risks, and long-term care planning before crises emerge.
As America’s population ages, financial advisers are being asked to do more than build portfolios. They are increasingly expected to help clients prepare for the possibility that memory, judgement or day-to-day decision-making may weaken over time. The scale of the issue is significant: the Alzheimer’s Association said Alzheimer’s was the fifth-leading cause of death among U.S. adults aged 65 and over in 2024, while the University of Washington in Seattle found that more than three-quarters of adults with some diminished capacity were still managing their own finances in 2022.
That makes early recognition especially important. Advisers and planners often notice the warning signs first because they know how a client usually behaves. According to specialists quoted by Financial Planning, red flags can include repeated questions, confusion in conversation, unusual investment choices, difficulty following instructions or a growing struggle with documents and account access. A pattern that looks small in isolation can become more meaningful when it is out of character for the client.
The challenge is that these conversations are rarely easy. Money already carries emotional weight for many people, and discussion of health, ageing and vulnerability can heighten that discomfort further. Yet advisers say there is value in approaching the subject before a crisis forces the issue. Megan Slatter, a wealth adviser at Crewe Advisors in Salt Lake City, told Financial Planning that she prefers to begin with practical scenarios, such as who would pay bills or deal with the bank if a client were hospitalised suddenly, rather than opening with dementia itself. That kind of framing can make planning feel less alarming and more actionable.
The urgency is sharpened by the risk of fraud. The Justice Department’s 2025 annual report on elder fraud and abuse said enforcement actions involved more than 1 million older victims and losses of more than $2 billion, including $1.8 billion tied to supposed investment opportunities. Bryan Walls of HB Wealth in Atlanta said artificial intelligence has made scams harder to spot, with criminals able to mimic banks or other trusted institutions more convincingly. For some families, safeguards such as account monitoring, limited permissions and clear authorisations can make the difference between catching suspicious activity early and suffering a costly loss.
Advisers can also help by broadening the planning discussion beyond investments. That means making sure clients understand possible long-term care costs, the role of insurance, and how Medicaid’s means-tested rules may affect future options if care is needed. When the subject moves into estate documents, care placement or public benefits, advisers may need to bring in an estate-planning lawyer or other specialist, because Medicaid rules and care services often vary by state and even by county. The broader message, advisers say, is that anticipating cognitive decline is not only about risk management; it is also a way to show clients and their families that the adviser can guide them through one of life’s most difficult transitions.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
