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Financial capacity in older adults: a growing concern for clinicians

Older people with cognitive impairment and/or dementia may be particularly vulnerable to diminished financial decision‐making capacity. Financial capacity refers to the ability to satisfactorily manage one's financial affairs in a manner consistent with personal self‐interest and values. Impairment of financial capacity makes the older individual vulnerable to financial exploitation, may negatively affect their family's financial situation and places strain on relationships within the family. Clinicians are often on the front line of responding to queries regarding decision‐making capacity, and clinical evaluation options are often not well understood. Assessment of financial capacity should include formal objective assessment in addition to a clinical interview and gathering contextual data. Development of a flexible, empirically supported and clinically relevant assessment approach that spans all dimensions of financial capacity yet is simple enough to be used by non‐specialist clinicians is needed.