57 percent of older Americans say having a conversation about
later-life needs is a low priority (even among those 80+), and a
third have never discussed it with family
Embarking on the seemingly “golden years” of life, older
Americans have identified a pain point — talking about potential
challenges or needs as they age.
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According to the 2018 Wells Fargo Elder Needs Survey, older
Americans are not yet talking with their families about their later
years and the kind of help they may need, nor are they talking
about their plans for healthcare, their estate, and other basic
plans for aging. Lack of urgency is the biggest barrier to
conversation, and both older Americans and their adult children say
the conversation is difficult. While recognizing the prevalence of
exploitation and scams targeting seniors, few older Americans
believe they will fall victim, and key protections are not yet in
place.
“Some older adults may struggle to see the need to plan for
issues they may face as a result of aging. They spend a lifetime
preparing for retirement, but then fail to plan to see themselves
through retirement,” said Ron Long, head of Regulatory Affairs and
Elder Client Initiatives at Wells Fargo Advisors. “This
unwillingness to plan and have hard conversations about aging is
increasing senior vulnerability and leaving gaps in
protection.”
The 2018 Wells Fargo Elder Needs Survey represents a national
sample of 784 older Americans (ages 60+, with at least $25,000 in
investable assets) and a similar survey of 798 adult children (ages
45 to 59, with at least $25,000 in investable assets) who
communicate with a parent regularly. The survey was conducted
between Feb. 26 and March 15, 2018.
Aging and money are difficult to talk about
Older Americans may be posing a threat to their nest egg by
shying away from conversations about aging. More than one-third of
older Americans who are parents say it is difficult to talk with
their children about challenges they will face in later years,
including one in four (24 percent) who say it is difficult to talk
about money and finances. Adult children find such conversations
even more difficult, with one in three (34 percent) saying money
and finances are difficult to discuss.
The biggest reason most parents and children are not yet
talking, however, is that they see no urgency, especially among
parents (even among those age 80+). More than half of older parents
(57 percent) say having a conversation about later-life needs is a
low priority, and a third have never discussed it with family.
Adult children are equally unwilling to have these conversations
because it is either a low priority (32 percent) or would cause
conflict (23 percent).
Even so, four out of five adult children say they want their
parents to plan more so that they do not have to intervene. This
contrasts to the 35 percent of older Americans who say that too
much planning gets in the way of enjoying life.
People who plan are happier
Older Americans who have talked with their families about
later-life needs and have estate and planning documents in place
are happier. In looking at eight planning behaviors measured in the
survey, 40 percent of those who have done between six and eight of
the activities describe themselves as very happy; this contrasts to
22 percent of those who have done none of the activities or just
one or two.
“While planning for old age isn’t a topic individuals
particularly enjoy, it often provides greater confidence and
comfort in knowing that they’ve prepared for potential later-life
needs,” Long said. “That confidence translates into greater
happiness because it’s one less thing they, or their children, need
to worry about.”
Gaps in planning and protection
Despite the positive potential impact of planning, many older
Americans do not have important estate and health documents in
place. While three-quarters of older Americans (74 percent) report
having a written will, many fewer report having other legal and
financial documents:
- 60 percent have an advance healthcare
directive.
- 59 percent have a power of attorney for
healthcare.
- 48 percent have a power of attorney for
financial matters.
Having documents in place does not necessarily mean they are
current. One in six report their documents are out of date.
Scams and financial abuse: “It won’t happen to me”
Older Americans are targeted for scams, often because they have
accumulated significant wealth or they are vulnerable because of
isolation and/or cognitive or physical decline. And while older
Americans recognize the prevalence of elder exploitation and scams,
few say they believe they will fall victim themselves; as a result,
key protections are not in place.
Nearly all older Americans (98 percent) say that older people
are susceptible to scams, as do 98 percent of adult children. But
only one in ten say they are susceptible to scams, and only one in
four (24 percent) worry about it. Self-assurance is a driving
factor of this sentiment, as four out of five (81 percent) of older
Americans say they are confident they will not be scammed out of
their money as they get into their later years.
This assurance is not one-sided. While adult children are far
more likely to say their parents are susceptible to scams (38
percent), three out of four (75 percent) also say they are
confident that their parents will not fall victim.
Of even greater concern is the misunderstanding of who targets
seniors. Although nearly half of older Americans (48 percent) say
there are family members they would not trust with their money, 68
percent say strangers are the most likely perpetrator of financial
exploitation, followed by hired help (24 percent). Fewer than one
in ten (9 percent) say that family members are the most likely
perpetrators, despite family members being among the most common
perpetrators1.
“Unlike strangers, family members don’t have to gain access and
establish a relationship with the victim; they are already
positioned to exploit,” said Kez Wold, associate commissioner for
Adult Protective Services in Texas. “Also, family members may
rationalize the exploitation, or may feel entitled to the money.
And if a family member is the perpetrator, the victim is certainly
less likely to report or pursue the issue.”
Even among seniors who are aware of potential financial abuse,
the majority of older Americans do not have protective measures in
place to guard against potential threats:
- 11 percent have alerts of large
transactions sent to others.
- 11 percent keep their checks or credit
cards locked away.
- About a third (30 percent) say they
have a “trusted contact” on file with their financial institution
for protection against financial scams or exploitation.
- Just over a third (35 percent) do not
check their credit report annually.
- Two-thirds sign documents without
having others review them first.
- Fewer than half (46 percent) use
automatic bill pay so others are not writing checks.
Helping protect seniors
As concerns about elder financial abuse and exploitation rise,
Wells Fargo is among the financial services companies working to
prevent and stop the crime before it takes root. All Wells Fargo
team members who interact with customers take annual training on
how to prevent and report suspected elder financial abuse. Wells
Fargo also offers a senior curriculum in Hands on Banking®, a
financial education program offered free of charge across the U.S.,
and has begun a public awareness effort to encourage individuals to
take steps to protect themselves.
View the Wells Fargo Elder Financial Abuse Protection Guide for
more information.
Along with the company-wide actions noted above, in 2014 Wells
Fargo Advisors created a dedicated Elder Client Initiatives team —
a unit devoted to taking action when a financial advisor or other
team member suspects a customer is the victim of financial abuse
and which has advocated extensively for state statutory changes
that enhance elder protection.
Prevention as a defense
There are a number of actions individuals can take to protect
themselves from elder financial abuse and exploitation:
- Talk with trustworthy family members
about your financial plans.
- Update and have legal documents in
place, such as wills, an advance healthcare directive, and powers
of attorney for financial matters and for health care.
- Put in place protections such as
signing up for direct deposit, annual credit report checks,
automatic bill pay, automatic alerts of large transactions sent to
a trustworthy individual, and keeping checks and credit cards
locked away.
- Avoid isolation through social
activities.
“Putting safeguards in place and engaging in a transparent, open
dialogue will be critical in protecting the dollars older Americans
have worked hard to accumulate,” Long said. “In some cases, their
livelihood may depend on it.”
1 National Adult Protective Services Association, 2018
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
investments, mortgage, and consumer and commercial finance through
8,200 locations, 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 42 countries and territories to
support customers who conduct business in the global economy. With
approximately 265,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was
ranked No. 25 on Fortune’s 2017 rankings of America’s largest
corporations. News, insights and perspectives from Wells Fargo are
also available at Wells Fargo Stories.
About Wells Fargo Advisors
With $1.66 trillion in client assets as of March 31, 2018, Wells
Fargo Advisors provides investment advice and guidance to clients
through 14,399 full-service financial advisors and referrals from
4,525 licensed bankers. This vast network of advisors, one of the
nation’s largest, serves investors through locations in all 50
states and the District of Columbia. Wells Fargo Advisors is the
trade name used by Wells Fargo Clearing Services LLC and Wells
Fargo Advisors Financial Network, LLC, Members SIPC, separate
registered broker-dealers and non-bank affiliates of Wells Fargo
& Company. All data includes Wells Fargo Clearing Services, LLC
and Wells Fargo Advisors Financial Network, LLC, as of March 31,
2017.www.wellsfargoadvisors.com
About the Study
Versta Research conducted a national survey for Wells Fargo of
784 older Americans (ages 60+, with at least $25,000 in investable
assets) and a similar survey of 798 adult children (ages 45 to 59,
with at least $25,000 in investable assets) who communicate with a
parent regularly. The two groups were sampled independently, each
stratified by age, gender, race, ethnicity, region, and assets to
ensure samples that reflect the full U.S. population of each group.
The survey was conducted between February 26 and March 15,
2018.
About Versta Research
Versta Research is a full-service market research firm,
headquartered in Chicago, IL, specializing in customized strategic
market research and public opinion polling.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180508005178/en/
Media Contacts:Desari Mueller,
314-875-4047Desari.Mueller@wellsfargoadvisors.comorKim Yurkovich,
314-875-4042Kim.Yurkovich@wellsfargoadvisors.com
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