Elder abuse: How to spot the signs and reduce risk

The 2021 study highlighted the most common form of financial abuse reported by older Australians was being pressured into giving or loaning money, possessions or property (41.5%).

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Behaviour amounting to theft was just over one-third (34%) of those who reported financial abuse. Almost as common was failing to provide financial contributions that had been previously agreed upon, such as rent, food, aged care and home services (31.4%). Dr Rae Kaspiew, deputy research director at AIFS, says the analysis shows that while the bulk of elder abuse is emotional, financial abuse is widespread. “Financial abuse typically involves adult children, mostly sons, wanting to gain access to bank accounts, investments, the family home or other real estate,” she says.

Early inheritance syndrome

The wealth disparity already existing between ageing Baby Boomers and younger generations is likely to continue to grow. According to the Australian Productivity Commission, Baby Boomers are estimated to pass on $224 billion a year in inheritances by 2050.

Decades of record house price increases, strong long-term equity growth, superannuation and generous tax breaks have all helped accumulate that windfall. But younger generations, having missed out on many of those opportunities, want their parents to support them.

“There’s a lot of early inheritance syndrome,” says Ellen Bradley, legal director of Bradley Allen Love Lawyers. “That’s when children, or other family members, think the inheritance will one day be theirs, so why not take it now.”

While most parents wish to help their children buy a home if they could, it can have disastrous consequences to their own retirement, creating tax issues, making them ineligible for Centrelink support and potentially ensnaring them in expensive domestic feuds.

“Elder abuse is a dark and often hidden scourge, but it is a serious human rights issue,” says Age Discrimination Commissioner and former federal government minister Dr Kay Patterson. “Unlike other forms of abuse, elder abuse is often committed by the victim’s son or daughter, which can present an added dimension of trauma.”

The best way to manage expectations and protect your financial wellbeing in retirement is to have a well-thought-out estate plan.

Spotting the warning signs

Only around three in ten older people report incidents of abuse due to self-blame, shame, sadness, fear and ambivalence. Some signs of financial abuse include:

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• Family members reappearing and moving in with elderly parents
• Significant changes to assets, such as property transfers, especially if the person has lost capacity
• Misuse of Powers of Attorney
• Pressure to make or change a Will
• Not having money for basics, such as food, clothing, transport and bills
• Confusion about where funds are and who has been accessing them
• Large withdrawals or changes in banking patterns or activities.

Ways to reduce your risk

Financial abuse is illegal and there are measures you can take to keep your finances safe, including:

• Contacting your bank about any unusual financial activity
• Never sharing financial details, PINs or passwords over the phone, even if you believe you are speaking to a charity or institution you know
• Adding additional levels of security over your accounts where possible
• Avoiding signing documents unless you clearly understand the conditions and potential outcomes
• If someone asks for money, discuss it with a trusted friend or family member
• If you are unsure or feel coerced, contact your lawyer for advice, or call the free Law Access helpline on 1300 888 529.

Who to call: Help lines and services

• If you, or someone you know, have concerns about elder abuse, call 800 ELDERHelp (1800 353 374) to be directed to a service in your state or territory.
• For confidential support and information, contact the Safe Steps’ 24/7 Family Violence Response Line on 1800 015 188, or the Men’s Referral Service on 1300 766 491.
• For a confidential discussion with an experienced counsellor, call Lifeline on 13 11 14.