How a financial planner can help you stay secure after a dementia diagnosis

Dealing with dementia, whether it’s affecting you or someone close to you, can be incredibly emotionally challenging, as it has the power to take someone away even while they’re still physically present.

With life expectancy increasing, dementia is becoming increasingly common, and the Alzheimer’s Society estimates that 1 in 3 people born in the UK today will develop it during their lifetime.

Beyond the emotional toll it can take, dementia often brings complex practical challenges, including financial management. Your financial wellbeing plays a key role in maintaining independence and quality of life, which makes it all the more important not to overlook.

So, if you or someone close to you has been diagnosed with dementia, or if you’re thinking ahead and planning for the future, working with a financial planner early on can make a significant difference. It can help protect your wealth, ease the burden on loved ones, and ensure your wishes are understood and respected.

Read on to discover four ways a financial planner can help you stay secure after a dementia diagnosis.

1. Make your finances simpler to manage

Once you reach old age, you may have multiple pensions, several savings accounts, and a complex investment portfolio. This may be manageable while you’re well, but it can quickly become overwhelming if you are diagnosed with dementia.

Similarly, if your partner is diagnosed, you may want to simplify your finances so that you have one less thing to worry about during an already stressful time.

A financial planner can help you by reviewing your finances and identifying opportunities to simplify your income sources, investments, and outgoings. This could include consolidating similar accounts or pensions, automating regular payments, or liquidating investments and reinvesting them into alternatives such as an annuity.

This can help make things simpler and easier to manage, not just for you, but also for anyone who may need to step in later.

2. Prepare for the cost of care

During the latter stages of dementia, you may need specialist care, either in your home or at a care home. Professional support can be expensive and may last for several years.

The Alzheimer’s Society estimates that the average person with dementia spends around £100,000 on care over their lifetime, which could significantly erode your estate if you’re unprepared.

A financial planner can help you anticipate these expenses by modelling how future care needs might impact your finances, giving you a clearer picture of what to expect. They can also explore funding options, such as annuities or equity release, tailored to your situation.

Furthermore, they can advise on strategies like establishing trusts or lifetime gifting to help protect your estate from being diminished and to reduce future potential Inheritance Tax (IHT) liabilities.

3. Register a Lasting Power of Attorney and make your wishes clear

A Lasting Power of Attorney (LPA) is a legal tool that allows someone you nominate to manage your finances or health matters if you’re no longer able to do so yourself. This can be crucial if you have dementia as it enables someone you trust to make key decisions on your behalf.

While a financial planner can’t register an LPA, they can work alongside a solicitor to ensure the documentation is handled correctly and in your best interests. They can also work with you to understand your intentions and then create a plan that serves them and is simple to follow should an LPA be needed further down the line.

It’s important to note that an LPA must be arranged while you still have mental capacity.

4. Update your estate planning documents

After a dementia diagnosis, it may no longer be legally possible to change your will. That’s why it’s important to review your estate plan regularly and ensure it reflects your current wishes and life circumstances.

In addition to updating your will, you might also consider writing a letter of wishes that outlines how you’d like certain matters handled, and it could be a good idea to update or review your pension nominations.

A financial planner can work with you and your solicitor to ensure your estate plan stays aligned with your values and goals, giving you confidence and peace of mind that your legacy will be used as you wanted.

Taking action early can help protect your finances and your future

Facing dementia is never easy, but you don’t have to face it unprepared. Taking action while you’re able to make decisions can offer clarity to both you and your loved ones, reduce stress, and give you more control over your future.

Whether it’s organising your affairs or helping a family member do the same, a financial planner can provide guidance, structure, and support every step of the way, giving you more time to focus on what matters most.

To speak to a financial planner, get in touch.

Email [email protected] or call us on 01625 466360.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.