Fewer than one in 10 (9%) adults with living parents have discussed how finances should be managed if they developed a condition such as dementia, says Nationwide.
This is despite 53% of people saying they would feel comfortable having the conversation.
Nationwide said a lack of preparedness means that almost a quarter (23%) of adults wouldn’t know where to start managing finances if dementia affected someone in their family, with 41% stating that their household would be financially unprepared. Women were significantly more likely than men to say they would be unprepared for the financial impact (46% compared with 33%).
The survey found only 6% of people believe they could afford dementia-related costs without making changes to their finances, while 23% expect to have to draw on savings, and 22% said they would need to cut day-to-day spending. The same proportion (22%) expect to rely on government support.
The poll, which surveyed more than 2,000 people aged 30 and above with living parents, coincides with the second anniversary of Nationwide and Dementia UK’s partnership. Since launching, over 8,300 dementia clinic appointments have been booked across more than 250 Nationwide branches.
An estimated 982,000 people are currently living with dementia and the condition is expected to cost the UK economy £42 billion this year alone, with almost two thirds of that burden falling on people living with dementia and their families.
Despite this, a third (33%) of those polled said nobody in their immediate family has a power of attorney, while a further 16% were unsure whether one exists. Just 14% have arranged a power of attorney or similar arrangement for themselves.
The research also uncovered widespread misunderstanding about who can legally make financial decisions when someone loses their ability to manage their own affairs. More than a fifth (21%) incorrectly believe a spouse or partner automatically gains control of all finances, while a similar number (19%) believe adult children do. A further 13% believe close family members can automatically access a person’s bank accounts.
Charlotte Kensett, director of social impact at Nationwide, said: “Too often, families only start thinking about finances when dementia has already reached a crisis point. Having conversations and putting plans in place earlier can help ensure a person’s wishes are understood, reduce uncertainty for loved ones and make managing the challenges ahead that little bit easier.”
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