New Allianz Life Study Shows Incidence, Impact of Elder Financial Abuse May Be Worse than People Think

Update to 2014 Safeguarding Our Seniors Study Offers Crucial
Feedback from Caregiver Community; Average Cost per Victim Rises to
$36,000

MINNEAPOLIS–(BUSINESS WIRE)–The incidence and financial impact of elder financial abuse may be worse
than previously thought, according to the 2016 Safeguarding Our
Seniors Study
* from Allianz Life Insurance Company of North America
(Allianz Life®). Originally commissioned in 2014,** Safeguarding
Our Seniors
found that about 20% of family and friends reported
knowing an elder who experienced financial abuse. The current study,
which focused on family and friends in active elder caregiving roles, or
those who could be soon, found that more than one-third of active
caregivers (37%) said the elder they care for has experienced financial
abuse or exploitation with a loss. Furthermore, respondents revealed
that elder financial abuse is not an isolated occurrence, with a full
40% of all active and potential caregivers confirming that their elder
has experienced financial abuse more than once.

To build a more comprehensive perspective on the issue of elder
financial abuse and how to prevent it, the 2016 Safeguarding Our
Seniors
study surveyed 1,000 active and potential caregivers.*** In
addition to providing insight about incidences of elder financial abuse,
caregivers offered a clearer picture about the significant monetary
costs of the abuse.

Respondents noted the average financial loss to victims was $36,000, 20%
higher than estimated in the 2014 study, with nearly half of respondents
saying the effect on the elder victim to be “major loss” or “financial
ruin.” Equally troubling, nearly 90% of active and potential caregivers
said they also experienced a financial impact from the abuse, with the
average cost to them also reaching $36,000 – a direct result of having
to compensate for their elder’s loss.

“It’s clear that elder financial abuse is becoming more commonplace, and
unfortunately, it also appears to be greater than we thought in both
scope and impact,” said Allianz Life President and CEO Walter White.
“We’ve also learned that the damaging effects of abuse extend well
beyond the seniors themselves to their caregivers. We believe the
financial services industry, government, and the general public need to
join forces to bring greater awareness to this issue and help reverse
this troubling trend.”

Greater Risk with Mental Decline

The study results also show that elders with a mental decline are at
greater risk, underscoring the need for more attention to the problem.
Almost half (45%) of active caregivers say the elder they care for shows
signs of dementia or a decline in mental abilities, with nearly three
quarters (71%) classifying that decline as “moderate” or “severe.”

As a result, the frequency and financial impact are both greater for
elders who have experienced mental declines. Incidence of elder
financial abuse as reported by active and potential caregivers is 10%
greater (34% versus 24% with no mental decline) and average reported
monetary loss is 28% higher ($41,000 versus $32,000 with no mental
decline).

Beyond Dollars and Cents: The Emotional Impact

Just as concerning as the substantial monetary loss, elder financial
abuse also takes a significant emotional toll on its victims. Active and
potential caregivers reported that their elder experienced a variety of
emotions due to the abuse, including anger (36%), depression (34%),
anxiety (28%) and guilt (25%). Perhaps most troubling, however, is the
isolation that can occur after abuse. A full half of all caregivers said
the financial abuse caused that elder to isolate himself/herself with a
15% increase in isolation for elders with mental declines (58% versus
43% with no mental decline).

Although many active and potential caregivers believe elders would
report financial abuse if it happened to them, a third of those who
believe the elder would not report the abuse believe their elder would
remain silent due to embarrassment (44%), lack of awareness (40%) or not
knowing who to tell (27%). In fact, a quarter of all caregivers said
they discovered the abuse themselves or from someone other than the
elder they care for.

“As our study indicates, elder financial abuse is a multi-layered issue,
which highlights the need for a renewed focus on developing a wide range
of strategies to protect our country’s elders,” noted White. “We believe
involvement of a third party in financial management – whether another
family member or experienced financial professional – can be a positive
first step. Establishing a dialogue that this is a real issue with
potentially devastating implications is also key.”

Taking Action

If you’re a family member or caregiver, here are some ways you can help
protect yourself or loved ones in your life:

  • Plan ahead to protect your assets and ensure that your wishes are
    followed
  • Consult with a qualified financial professional or attorney before
    signing complex agreements or anything you don’t understand
  • Build relationships with professionals who are involved with your
    finances – they can assist in monitoring for suspicious activity
  • Limit your use of cash – using checks and credit cards leaves a paper
    trail
  • Trust your instincts and feel free to say “no” – remember, it’s your
    money

To find more tips for prevention and red flags to watch for, check out
the Preventing Elder Financial Abuse Tip Sheet from the
Better Business Bureau, available at www.allianzlife.com/sos.

Committed to Finding a Solution

As a company, Allianz Life partners with community organizations to
deploy its employee volunteers in the community to raise awareness of
elder financial abuse. Working together with the Better Business Bureau,
Allianz Life created the Safeguarding Our Seniors volunteer program that
sends volunteers to senior or other community centers to educate and
encourage discussion on the topic. To date, volunteers have made more
than 70 presentations in and around the Twin Cities, reaching more than
900 seniors with valuable information about how they can protect
themselves from financial abuse.

In addition to educating consumers about elder financial abuse, Allianz
Life also developed the Preventing Elder Financial Abuse
education course to help financial professionals understand the scope of
the problem and provide simple steps they can take to help protect their
clients. Available to financial professionals who work with Allianz
Life, the Preventing Elder Financial Abuse course is one of many
topics with support materials that Allianz Life offers to more than
20,000 financial professionals every year.

“Allianz Life remains committed to a leadership role in educating
financial professionals, the community and employees about elder
financial abuse prevention and how we can all be part of the solution,”
concluded White.

About Allianz Life Insurance Company of North
America

Allianz
Life Insurance Company of North America
, one of FORTUNE’s 100 Best
Companies to Work For in 2016, has been keeping its promises since 1896.
Today, it carries on that tradition, helping Americans achieve their
retirement income and protection goals with a variety of annuities and
life insurance products. In 2015, Allianz Life provided a total of $2.4
billion in benefit payments that supported policyholders’ financial
objectives. As a leading provider of fixed index annuities, Allianz Life
is part of Allianz SE, a global leader in the financial services
industry with 142,000 employees in more than 70 countries worldwide.
More than 85 million private and corporate customers rely on Allianz
knowledge, global reach, and capital strength to help them make the most
of financial opportunities.

*The 2016 Safeguarding Our Seniors Study was conducted in August
2016 with 1,000 panel respondents age 18-64 who are either actively
providing care for a non-spousal elder age 65+, or could be in a
position to provide such care within the next five years.

**The 2014 Safeguarding Our Seniors Study was conducted in March
2014 with 2,248 panel respondents ages 40-65+ (n=1,025 for adults ages
40-64 and n=1,223 for adults ages 65+) and was commissioned by Allianz
Life Insurance Company of North America. Estimates for incidence of
elder financial abuse were based on response of adults ages 40-64.

*** Active caregivers are defined as currently providing care for an
elder. Potential caregivers are defined as someone who could be in a
position to provide care to an elder in the next five years. A caregiver
is defined as someone who provides financial, emotional or social
support to a family member or friend age 65+.

Contacts

Allianz Life Insurance Company of North America
Jeff Faust,
763-765-6614
jeff.faust@allianzlife.com
Twitter:
@AllianzLifeNews

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