Navigating delicate financial discussions with seniors

Money can be a taboo topic for people of all ages. It’s, nevertheless, crucial to bring it up with the seniors in your life, since they become more vulnerable as the years go by.

But how can you help them stay vigilant and carefully manage their money? Having honest, empathetic and judgment-free discussions help establish trusting relationships that will support their financial security.

Why talk to seniors about their financial situation?

Speaking about money with the elderly has many benefits, the main one being to better prepare them for any situation that could jeopardize their finances. In that way, these discussions help alleviate money-related stress.

It’s better to have preventative conversations while they have total control of their finances; you don’t want to wait until they’re in the middle of a crisis situation to start having these important discussions.

Subjects to discuss with seniors

Some topics may prove touchy. You may not exhaust an entire subject in one go. Be patient and understanding, and plan to follow up with them to add to your previous discussions. Little by little, at their pace, you’ll make headway.

Here are a few subjects you can bring up with them:

• Budget
• Fraud
• Retirement
• Estate planning
• Caregiving and wills
• Disbursement strategies
• Investing
• Life insurance

The budget: important at any age

It’s important that a budget be adapted to each individual’s situation. In retirement, income decreases while certain costs, such as healthcare, increase. And then, other expenditures will decrease, which is why it’s important to regularly take stock. Don’t hesitate to talk to the seniors closest to you about their budget.

Tax season

Even if they’re no longer in the job market, there are many details that seniors must consider when it comes time to do their taxes. The sums that they have to manage for their retirement must be correctly listed. Also, the benefits they receive may vary according to their province of residence, habits and financial situation, for example. In this vein, government websites on the subject, such as that of the Canada Revenue Agency, are good guides to help ensure that nothing is left to chance.

Here are a few elements to bear in mind:

• Age amount
• Pension income amount
• Pension income splitting
• Home accessibility tax credit
• Medical expenses tax credit
• Disability tax credit
• Federal political contribution tax credit
• Charitable donations

Finally, if you support an elderly person, you may be eligible for certain federal and provincial programs.

Are seniors more vulnerable to financial fraud?

Yes, the elderly are more vulnerable to financial fraud and abuse. A public inquiry conducted by the Canadian Radio-television and Telecommunications Commission revealed that 75% of seniors reported having been targeted by misleading or aggressive sales practices¹. It’s never too early to raise their awareness of the types of fraud out there and give them the tools they need to be more vigilant in the face of these threats.

Here are some points you can bring up:

• Preferred target
  Inform them of the fact that, with age, they become a preferred target for fraud due to their limited knowledge of the digital world, feelings of loneliness and accumulated wealth.
• Types of fraud
  It’s important to educate them on the different types of fraud and what characterizes each. Discuss affinity fraud, romance scams, phishing, vishing (“voice phishing,” which may even use voice altering software to make the caller sound like a loved one), etc.
• Signs of fraud
  Educate them on the signs of fraud, such as requesting personal information by email, text message or phone, especially if, in such a situation, they were to feel pressured to answer. Their interlocutor’s insistence is often a sign of fraud.
• Trusted people and resources
  Insist on the importance of having trusted people to turn to in case they have questions or concerns.

Advisor support

An advisor provides a wide range of services and adapts to their clients. The seniors in your life could benefit from expert advice. Whether to analyze their financial situation, give them personalized advice or sharpen their financial knowledge, an advisor can help guide them.