A history of family conflict, being isolated and being dependent on others have been pinpointed as the major risk factors that lead to older Australians experiencing financial abuse, according to a study by Griffith University’s Business School.
The research also found that having wealth and the misuse of power of attorney were other key factors.
Exact figures on elder financial abuse in Australia aren’t known but UK and Canadian studies have found between 2% and 8% of people aged over 65 experience financial abuse each year.
Financial abuse covers the misuse of a person’s funds, property or assets through stealing, forgery, forced changes, transferring money or property and withholding funds.
Dr Tracey West, who led the study, says it is important for elderly people to stay in regular contact with their financial institution to reduce their risk.
“Have bills such as telephone and utilities automatically paid from your bank account, seek information about legal and financial matters and get independent advice before signing any documents,” she said.
“This is especially important before co-signing loans or signing over home ownership.”
Other tips to reduce risk include:
- Read all legal documents carefully, including the fine print – seek advice if you don’t understand something
- Stop and wait if you’re feeling pressured – get advice before you sign a document
- Put in writing your expectations that your property/materials which are borrowed are to be returned…unless it’s a gift
- Keep your home secure; do not leave valuables lying around
- Complete a Will; Enduring Power of Attorney and an Advance Care Directive
- Update your documents yearly or as relationships or circumstances change
- Keep copies of these important documents in a safe place, which you can find easily
Good advice.
