As clients reach retirement, they are no doubt excited to achieve that status and enjoy some well-deserved time off. With retirement as their focus, it’s likely that falling victim to elder financial abuse is the last thing they want to think about, although it’s a threat that can deplete their hard-earned savings. As financial professionals, you know this is a real issue for elderly clients, who are at the highest risk of experiencing financial fraud.
However, according to the Allianz Life Retirement Risk Readiness Study,1 less than a quarter (24%) of retirees worry they may become a victim of financial fraud, compared with 42% of pre-retirees and 46% of near-retirees.
The study surveyed three categories of Americans to get different perspectives on retirement: pre-retirees (those 10 years or more from retirement); near-retirees (those within 10 years of retirement); and those who are already retired. Findings show current retirees are actually the least worried of any group about financial risks that can come with aging. This includes not only fraud and scams that target seniors, but also some of the major life changes that accompany aging and can impact finances, like health care risks and cognitive decline.