Written

For

The

Australian

-

The

financial

risk

that

often

is

overlooked

in

retirement

What happens if you lose the mental capacity to manage your money not in your 80s, but in your late 50s? It's a scenario most Australians have never seriously considered, yet dementia is now the leading cause of death in this country — and increasingly, it's striking earlier.

The statistics stopped me in my tracks. There are 29,200 Australians aged between 30 and 64 currently living with dementia, plus another 2,800 children with childhood dementia. Across the next four decades, the onset of dementia in younger Australians is projected to rise by 44 per cent. In my own practice, I'm seeing more clients than ever diagnosed — mainly in their 60s and 70s, but some in their 50s.

Here's why this matters financially: dementia can rob you of the legal capacity to make decisions at the exact moment you need to make the biggest ones of your life. You can't sign a will or appoint a power of attorney if you no longer meet the legal threshold of mental capacity. And yet 60 per cent of Australians don't even have a valid will.

My checklist starts with getting estate planning sorted by your mid-30s — not your 70s. Then think seriously about insurance: life, TPD and income protection to cover the wages and wealth you'd lose if you were struck down early. Have the uncomfortable conversation with your family about resuscitation, aged care bonds, and how your assets should be managed. Leave behind a contact list of your accountant, lawyer and adviser. And prepare a statement of assets, liabilities and login credentials — stored securely, but accessible to whoever holds your power of attorney.

One more observation from years of watching clients retire: those who stay physically and mentally active tend to keep their sharpness into their 90s. As a brain surgeon client once told me, the brain follows a simple rule — use it or lose it.