It is well known that elderly victims of financial abuse can be hurt badly, but the abuse also ends up costing the caregiver additional money to help support the victim, says a study by Allianz Life Insurance Company of North America released Wednesday.
Nearly 90 percent of caregivers say they also experienced a financial hit when the elder they were caring for was financially abused, with the average cost reaching $36,000 over the lifetime of the care, Allianz says.
The 2016 “Safeguarding Our Seniors” study, which included 1,000 active and potential caregivers, found that the average caregiver spends $8,400 a year to help the person they are caring for if there has been some sort of financial abuse. When no financial abuse has been experienced, caregivers spend an average of $5,400 a year.
The caregivers also spend an average of 10 hours per week in noncash support, such as driving the elderly person to appointments, delivering meals and social engagement. Fewer than half of current caregivers receive some form of financial assistance for that support, the study says.
“As America’s population ages, more people will be caregivers,” says Walter White, Allianz Life president and CEO. “Unfortunately, these caregivers will be at risk of experiencing the negative effects of elder financial abuse perpetrated against the person they’re caring for. While a focus on protecting seniors from financial exploitation is vital, we also need to provide resources to caregivers who increasingly will become collateral victims of the elder abuse.”
Two-thirds of caregivers say the cost of providing care is having a significant effect on their finances, and they worry about having enough money to retire.
Many caregivers are hesitant to talk with the elder person about potential fraud or scams. Fifty-eight percent say the assistance of a third party would make the conversations easier.
“We continue to advocate the involvement of a third party in financial management—another family member or experienced financial professional—as a simple first step in building a system of checks and balances that can help prevent financial exploitation before it starts,” adds White.