Older relative finances – how you can help
This content is for information purposes only and should not be taken as financial advice. Every effort has been made to ensure the information is correct and up-to-date at the time of writing. For personalised and regulated advice regarding your situation, please consult an independent financial adviser here at Castlegate in Grantham, Lincolnshire or other local offices.
We recently had World Alzheimer’s Day in September, and now (in November), the world is highlighting mental and physical well-being for men. These important events remind us that there are many people – including those we love – who struggle with illness, dementia and the wider effects of ageing.
In particular, managing money and other key aspects of day-to-day life can become more challenging. As someone looking out for an elderly relative, such as a parent, how can you help?
This is not just a question for younger people. Indeed, with increased UK life expectancy, you may find yourself in this position as you approach (or enter) retirement yourself.
In this short guide, our Grantham financial planners share some thoughts.
We hope this content is useful. To discuss your own investments or financial plan with us, please get in touch to arrange a no-obligation financial consultation at our expense:
01476 855 585
info@casfin.co.uk
Helping with banking
One survey shows that at least 75% of over-65s want to perform at least one banking activity (e.g. a transaction) in a local branch.
However, banking offices are steadily closing across the country. In 2024 and 2025 alone, three members of one major banking group closed at least 292 local branches. This reduces the opportunity for face-to-face interaction, especially in smaller towns, villages or suburbs.
If your elderly parent no longer has access to a local branch with their old bank, perhaps you could assist with searching for alternatives that still provide that service – and help them make the switch.
If your relative struggles with the “online” aspect of managing finances, such as mobile banking, then maybe you could spend time guiding them through how everything works (e.g. using a smartphone to navigate a banking app).
Support with lasting power of attorney
What happens if your relative is no longer able (or willing) to make independent decisions about their finances or day-to-day living? In this event, this responsibility should be passed on to a trusted person (or people) with their best interests at heart.
This is where lasting power of attorney (LPA) can be invaluable. It delegates legal responsibilities to someone else, letting them make decisions for an individual with little or no “cognitive capacity.” For instance, if your elderly parent is diagnosed with dementia and can no longer manage their finances, you (the “trusted person”) could manage them.
Naturally, it is important to set up LPA while your loved one still has the mental capacity to understand and agree to its provisions. In some cases, professional help may need to be enlisted (e.g. a doctor) to assess mental capacity. This is also important if an individual’s mental capacity seems to “come and go” (as can happen with dementia).
Assuming LPA is set up correctly and you are named as the trusted person, you can then make financial decisions on their behalf and in their best interest, such as:
- Whether (and how) to sell a property
- Claiming benefits
- Sorting out maintenance on the home
- Paying bills, debts or mortgage payments.
Encourage a culture of communication
Finances can be a difficult topic, especially between the generations. You might feel awkward talking to a parent about managing finances. People may worry about coming across as condescending, and older relatives may be hesitant to share sensitive financial information.
Every family dynamic is different. You will need to carefully judge when the best timing and manner to raise the topic may be. However, ignoring the topic risks bigger problems later, such as difficulties setting up LPA after your loved one has entered cognitive incapacity.
It can help enlist a financial planner’s help in the conversation. Getting a professional third party involved can send the message that your intention is to truly help. Regardless, a high level of trust is needed to open the conversation about finances.
One way to do this might be to encourage your elderly relative to share their financial concerns, fears and goals – without interjection or judgment. Remember, we all make mistakes with money and your loved one may be embarrassed to open up about their own.
Educate them about scams
The life savings in pensions can be very alluring to scammers, and the elderly can be more vulnerable due to isolation, cognitive decline and lack of technological knowledge.
This is another area where you could assist. If you are more technologically savvy, perhaps you can guide them through the process of adding security to their online accounts, such as by setting up 2-factor authentication (2FA) for banking.
Maybe you can help them set up anti-virus software on their devices. Or, you can teach them how to use a secure “password vault” and generally stay safe online (e.g. not clicking on links in suspicious emails and steering away from dubious social media adverts).
Invitation
If you are interested in discussing your own financial plan or investment strategy with us, please get in touch to arrange a no-commitment financial consultation at our expense:
01476 855 585
info@casfin.co.uk
