Elder abuse: How to spot the signs and reduce risk

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Financial abuse on the rise
Early inheritance syndrome
Spotting the warning signs
Ways to reduce your risk
Who to call: Help lines and services

Senior Australians are becoming increasingly vulnerable to financial abuse from within the family, as adult children facing difficult economic times pressure them into handing over money, loans or property.

Findings of a recent National Elder Abuse Prevalence Study by the Australian Institute of Family Studies (AFIS) show that one in six people aged 65 and older has experienced some type of abuse within a 12-month period.

The survey of the 7000 seniors living in the community (that is, not in residential aged care) found the most common types of abuse included:

Psychological abuse (11.7%)
Neglect (2.9%)
Financial abuse (2.1%)
Physical abuse (1.8%)
Sexual abuse (1%)

Source: Australian Institute of Family Studies

Overall prevalence rates were similar for men and women, with men slightly more likely to experience physical abuse and more women experiencing sexual abuse and neglect. Seniors with poor physical or psychological health and higher levels of social isolation are at greater risk of elder abuse, as well as those who no longer have decision-making capacity.

Financial abuse on the rise

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%).

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.

Learn more about estate planning and estate planning for SMSFs.

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:

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.

Case study 1

Nancy, 91, is frail, in poor health and lives in her own home in Melbourne. Two years ago, Nancy’s son moved in with her, along with his partner and two adult children. Neighbours reported to police that Nancy was being subjected to verbal, financial, emotional and physical abuse by her son and grandchildren. Police were unable to lay charges as Nancy refused to provide a statement. They issued a Family Violence Safety Notice against Nancy’s son, but the resulting Intervention Order did not prevent him from residing at his mother’s home due to lack of detail.

When Nancy was admitted to hospital after a ‘fall’, nursing staff noticed that her son was pressuring her for money during his visits. This was causing Nancy to feel extremely anxious and upset. She disclosed that her son had organised for her to appear at a Magistrates’ Court to revoke the Intervention Order.

To protect Nancy from further abuse, the nursing staff contacted the Elder Abuse Advocate at Melbourne’s Eastern Community Legal Centre (ECLC) and Nancy’s case manager at another local service. ECLC recommended that a joint letter be submitted to the Court prior to the hearing, outlining the abuse concerns.

This resulted in an extension of the Intervention Order and continued police monitoring when Nancy returned home. Ongoing collaboration between police, ECLC and other services has been critical to ensuring Nancy’s safety and ongoing care.

Case study 2

Nina and Joe are both in their 70s. They lived in their own home, which was valued at $950,000, but were finding it difficult to service their $280,000 mortgage as their only income was the Age Pension.

Nina and Joe happily came to an agreement with their daughter Marie and son-in-law Pete. They sold their house and contributed $600,000 to Marie and Pete to purchase a new home big enough for them all to live in.

The couple informed Centrelink, which noted that this contribution was in return for right of residence, formed a granny flat interest and they would continue to receive their pension. Nina and Joe provided Centrelink with written documentation of their arrangements.

Unfortunately, after five years of rising tensions, Marie and Pete demanded that Nina and Joe move out. They asked Marie to return their contribution, but she refused, telling them she thought it was a gift.

Because Nina and Joe had informed Centrelink, they could prove their $600,000 was not a gift but a contribution in return for care and accommodation. Their lawyer negotiated with Marie and Pete to sell the property and return the payment as they were no longer providing care and accommodation to Nina and Joe.

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.