Alzheimer’s disease is a devastating diagnosis that affects millions of individuals and families worldwide. In 2020 alone, an estimated 5.8 million Americans aged 65 and older were living with Alzheimer’s, and this number is projected to nearly triple to 14 million by 2060. As the 6th leading cause of death in the United States, Alzheimer’s takes a heavy toll not only on those diagnosed but also on their loved ones and caregivers.
In addition to the immense emotional burden, Alzheimer’s disease also carries a substantial financial impact. In 2020, the direct costs to American society of caring for those with Alzheimer’s and other dementias totaled an estimated $305 billion, with Medicare and Medicaid covering $206 billion (67%) of the total cost. As the number of Americans living with Alzheimer’s continues to grow, costs are expected to expand in lockstep, with combined Medicare and Medicaid spending on people with Alzheimer’s projected to reach a staggering $777 billion (in 2020 dollars) by 2050.
Facing an Alzheimer’s diagnosis can be overwhelming, but taking proactive steps to protect your finances is crucial. By putting the proper legal and financial safeguards in place, you can ensure that your wishes are carried out, your assets are protected, and your loved ones are provided for, even as the disease progresses.
In this white paper, we’ll discuss five essential steps you can take now to safeguard your finances in the face of Alzheimer’s: creating a power of attorney, establishing a living trust, updating beneficiary designations, considering long-term care insurance and annuities, and organizing and simplifying your financial accounts. While no one is ever fully prepared for the challenges of Alzheimer’s, taking these steps can provide you and your family with greater security, peace of mind, and the ability to focus on what matters most during this difficult time.