In an era of “do-it-yourself retirement,” individuals are largely responsible for their own retirement security and good financial advice is critically important. Yet with the rising incidence of Alzheimer’s disease and other cognitive impairments, an increasing number of older investors may lack the capacity to manage their investments.
Investors with diminished capacity are at risk for financial exploitation. Financial professionals must be equipped to respond appropriately when a client signals that he or she may lack the capacity to made financial decisions.
This report shares original research findings about current financial services industry practices and protocols to address diminished capacity—and gaps in knowledge, training and strategies to protect older investors. It includes key recommendations for stakeholders and policy makers.