Financial capacity in older adults: A growing concern for clinicians

Abstract

Older people with cognitive impairment and/ or dementia may be particularly vulnerable to diminished financial decision-making capacity. • Financial capacity refers to the ability to satisfactorily manage one’s financial affairs in a manner consistent with personal self-interest and values. • Impairment of financial capacity makes the older individual vulnerable to financial exploitation, may negatively affect their family’s financial situation and places strain on relationships within the family. • Clinicians are often on the front line of responding to queries regarding decision-making capacity, and clinical evaluation options are often not well understood. • Assessment of financial capacity should include formal objective assessment in addition to a clinical interview and gathering contextual data. • Development of a flexible, empirically supported and clinically relevant assessment approach that spans all dimensions of financial capacity yet is simple enough to be used by non-specialist clinicians is needed.