One in nine Americans aged 65 and older are living with Alzheimer’s disease. That’s more than 6 million Americans across the country, including 268,900 people in the District of Columbia, Maryland and Virginia. The costs associated with the disease can be overwhelming and put a huge economic strain on families, jeopardizing their financial security.
January is Financial Wellness Month, and the Alzheimer’s Association is encouraging individuals and families to take stock making financial plans that will create some security in preparing for an unexpected crisis of caring for someone with Alzheimer’s or other dementia.
“Six in 10 Americans are working while managing Alzheimer’s caregiving responsibilities. Many experience financial problems as they are forced to go from full-time to part-time employment, adjust work schedules, or take time off due to caregiving demands. Some give up work entirely. The loss of income can have a significant impact on the family’s well-being,” said Cindy Schelhorn with the Alzheimer’s Association National Capital Area Chapter.
The 2023 Alzheimer’s Association Alzheimer’s Disease Facts and Figures report found:
- In 2022, the lifetime cost of care for a person living with dementia was $392,874.
- In 2021, dementia caregivers bore nearly twice the average out-of-pocket costs of non-dementia caregivers ($12,388 versus $6,667).
- Nearly half (48 percent) of care contributors must cut back on their own expenses – including basic necessities like food, transportation and medical care – to afford dementia-related care, while others must draw from their own savings or retirement funds.
- Nearly two out of three people incorrectly believe that Medicare helps pay for nursing home care or are unsure whether it does.
“In DC, Maryland and Virginia, 615,000 people are providing unpaid care for a family member or friend living with Alzheimer’s. Care needs increase as the disease progresses, so caregivers may need to pay for services or support for the person living with Alzheimer’s. Financial literacy is especially important for caregivers, because it provides them with the knowledge and skills needed to better support themselves and others,” said Schelhorn.
To help families navigate these and other financial challenges, the Alzheimer’s Association recently launched a free online education program, “Managing Money: A Caregiver’s Guide to Finances.” Tips from the program include:
- Plan early. There are many benefits of planning early when it comes to your finances – both for the caregiver and the person with the disease.
- Start a positive discussion about finances. Bring in trusted family members or close friends for a discussion about what the person with the disease wants for the future.
- Avoid financial abuse and fraud. Individuals living with dementia have a greater risk of becoming victims and may struggle with making good financial decisions.
- Organize your finances. Conduct an inventory of your financial resources (savings, insurance, retirement benefits, government assistance, VA benefits, etc.). A financial planner or elder care attorney can help.
- Create a backup plan. Designate a trusted backup agent for the person’s power of attorney and consider designating responsibilities to more than one person.
For more information on financial planning, visit the Alzheimer’s Association web page: Plan for Your Financial Future or visit alz.org.
About the Alzheimer’s Association
The Alzheimer’s Association is a worldwide voluntary health organization dedicated to Alzheimer’s care, support and research. Our mission is to lead the way to end Alzheimer’s and all other dementia — by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support. Our vision is a world without Alzheimer’s and all other dementia®. Visit alz.org or call 800.272.3900.