Financial planning is an important consideration for individuals diagnosed with dementia and their families, according to Which? on World Alzheimer's Day. The Alzheimer's Society estimates that one in three people born in the UK today will develop dementia.
A key step is establishing a power of attorney (POA). This legal document allows a chosen person to manage financial affairs or health and welfare. It is a common misconception that a dementia diagnosis immediately prevents someone from setting up a POA; many people in the early stages of dementia still have the mental capacity to do so.
If a POA is not in place and capacity is lost, relatives do not automatically gain authority to manage finances. Other legal avenues, such as a deputyship in England and Wales, may then be required.
For managing day-to-day finances, the Alzheimer's Society suggests conducting a full financial audit. Banks may also offer safeguards like switching to a low-balance debit card, lowering ATM limits, or setting up transaction alerts.
Notifying energy and water suppliers about a dementia diagnosis is optional, but allows individuals to sign up for the free UK-wide Priority Services Register (PSR). This register provides extra support, such as protection against cut-offs for missed payments and priority assistance during outages.