Dementia is a financial risk that should be considered, writes Peter Watson.
Managing personal finances can be complicated even when you are mentally alert. If your cognitive ability declines, then managing financial affairs could shift from difficult to impossible.
The Alzheimer’s Society of Canada recently issued a report titled Navigating the Path Forward for Dementia in Canada. By the year 2030 almost one million people will have some form of dementia. That represents a 65 per cent increase over this decade.
Dementia will cause many financial challenges for individuals.
People will need to rely on others to make financial decisions on their behalf. This can be done by creating a Power of Attorney for Property. Do you have a POA or have someone that could fill that role?
By the year 2050, it is estimated 1.7 million Canadians will have dementia. That will require more than 690,000 full-time jobs to provide assistance. Will you be able to afford costs that will be your responsibility?
Often children provide endless hours of care to their parents. This mostly is provided by daughters who have their own careers and busy lives. Do you have a child that will be available to help?
If a parent moves to assisted living that will add additional expense. Is that affordable? Will one parent remain in the family home and is that affordable?
Growing old is part of life. Our challenge now is to plan.
Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Only investment-related products and services are offered through Watson Securities of ACPI. Peter Watson provides wealth management services through Watson Investments. He can be reached at www.watsoninvestments.com
