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Challenges Facing Financial Planners Advising Ageing Clients with Diminished Financial Capacity

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  • Teale John

    (University of New England, P.O. Box 375, Bli Bli, Qld 4560, Tel: 0419 308 488, Armidale, Australia)

Abstract

Old age can be associated with declining cognitive abilities and the development of Alzheimer’s disease and dementia. These conditions generally result in a reduced ability to make sound financial decisions, that is, a reduced financial capacity. This reduction is an important issue for financial planners, but reduced financial capacity is often difficult to detect. Moreover, severe legal consequences can result for financial planners who provide what is later deemed to be inappropriate financial advice to clients with these conditions. Consequently, this article aims to help financial planners understand this condition and the actions to take when it is detected.

Suggested Citation

  • Teale John, 2015. "Challenges Facing Financial Planners Advising Ageing Clients with Diminished Financial Capacity," Financial Planning Research Journal, Paradigm, vol. 1(1), pages 7-21.
    • Handle: RePEc:vrs:finprj:v:1:y:2015:i:1:p:7-21:n:1001
    DOI: 10.2478/fprj-2015-0001
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    References listed on IDEAS

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    1. Mitchell, Olivia S. & Lusardi, Annamaria (ed.), 2011. "Financial Literacy: Implications for Retirement Security and the Financial Marketplace," OUP Catalogue, Oxford University Press, number 9780199696819.
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