Protect your money in retirement
Protect your money in retirement
Retirement can be a time when people may try to take advantage of your trust.
Protect your money from people you know
Elder financial abuse
Elder financial abuse is a form of financial abuse and a serious problem in Australia.
Many older Australians can be at greater risk of elder financial abuse as they are more likely to rely on family members, caregivers, or others for help in managing their finances. Many have significant assets, such as property, savings, or superannuation – which can create opportunities for abuse.
Some of the signs of elder financial abuse during retirement may involve:
- feeling intimidated or pressured to sign a power of attorney over to someone
- someone misusing a power of attorney and acting against your interests
- someone taking advantage of a family agreement to provide care for you in exchange for financial assistance
- being pressured into giving or loaning money, possessions or property
- being threatened or pressured to make or change your will
- someone taking advantage of your role as guarantor on a loan
- the sale or transfer of a property without your permission
For more information about the typical behaviours of elder financial abuse – and financial abuse more broadly, see financial abuse. If you’re experiencing financial abuse or think you might be – or even if you just want to ask some questions – click on the link provided, and don’t hesitate to call us or more of the free and confidential services listed.
The ‘Bank of Mum and Dad’
Some retirees choose to help their children and grandchildren buy a home, start a business or deal with living costs.
This can feel like the right thing to do, but make sure it’s your choice.
Ensure you are not being:
- pressured to gift or lend money
- asked to become guarantor for a loan you are not comfortable with
- made to feel guilty for not helping
Your options for support
If someone you trust is taking advantage of you, you may feel ashamed or embarrassed. These feelings are normal and are one reason many cases of elder financial abuse go unreported.
Support is available if you or someone you know needs help.
- Phone the free national elder abuse helpline, 1800 ELDERhelp (1800 353 374), to be directed to appropriate support services in your state or territory.
- Visit Compass – look under the Find Help tab for information, service providers and advice in your state or territory.
- Don’t be afraid to reach out to your bank or financial provider to seek support. Some financial providers have a dedicated specialist team to talk through your needs and safely help manage your finances.
- Stay connected with people you trust for support – this may include your doctor, accountant or lawyer, as well as independent family members and friends.
- Visit Older Persons Advocacy Network, or phone 1800 700 600, for information and support for older people experiencing abuse in the aged care system.
Case Study:
Helen gets help with unusual transactions
Helen retired due to health issues and has recently been struggling to manage living alone. Her adult son offered to move in to help with her care and drive her to appointments. Over time, he also took over paying the household bills and managing her banking. Without Helen’s knowledge, he began using her account for his personal expenses, including small bills and purchases. Helen received her bank statements by post and noticed some unusual transactions. She suspected her son was using her credit card without permission, but feared that confronting him might seem mistrustful or stop him helping her. Helen visited her bank and asked to speak to someone privately. The bank took her concerns seriously and helped her secure her account. They also put her in touch with an elder abuse support service who gave her advice on staying in control of her money.
Protect your money from people you don’t know
Scams and fraud target people of all ages. But scammers can target older Australians, especially if they’re less familiar with technology, more isolated or looking to invest.
Scammers use many tricks to convince you to part with your money. They often take time to get to know you and develop a relationship, so you feel like you know them. But they may avoid meeting you in person.
Common scams targeting older people
Some of the more common scams targeting older Australians include:
- Investment scams: scammers promise big payouts, quick money or guaranteed returns.
- Phishing scams: a scammer contacts you via phone, email, social media or text message and attempts to deceive you into giving out information such as your bank account details, passwords or credit card number. The scammer may pretend to be someone you know, or a business you regularly deal with, such as your bank.
- Dating and romance: a scammer poses as a potential partner on a dating app or social media. They build trust, then offer you an ‘investment opportunity’ or ask for money, gifts or personal details.
- Remote access or IT support scams: a scammer pretends to be a staff member from a large computer or telecommunications company and requests remote access to your computer, claiming your computer has a virus or has been sending error messages they want to ‘fix’.
- Prize and lottery scams: you are told you have won a prize, but must pay a fee to claim.
- Inheritance scams: a scammer poses as a lawyer or foreign official, and contacts you about an unexpected inheritance. They may provide fake documents to make it look real and ask you to share personal information or pay a series of charges to claim the inheritance.
- Rebate scams: you are told you are owed a refund from the government, your bank or a trusted institution, and are asked for your account details to process it.
How to protect yourself
Scamwatch, run by the National Anti-Scams Centre (NASC), says to protect yourself against being scammed:
- Stop – Don’t give money or personal information to anyone if unsure
- Check – Check who you’re dealing with and ask yourself could the message or call be fake?
- Protect – Act quickly if something feels wrong
You can also:
- talk to someone you trust – ask them to check what is happening
- regularly check bank and credit card statements
- open your own mail
- if lending money, put it in writing and make a plan for repayments
- talk to your bank, accountant or super fund and voice your concerns
Find out more about protecting yourself from scams.
Act fast if you’ve been scammed
If you’re worried you have been scammed:
- Don’t send any more money. Block all contact from the scammer.
- Contact your bank or financial institution immediately to report the scam. Ask them to stop any transactions.
- Warn your family and friends about the scam, so they can watch out for potential follow-up scams.
Find out more about what to do if you’ve been scammed.
Protect your money from yourself
It’s important to recognise when you might need help – sometimes you might need to protect your money from yourself.
If you’re starting to experience memory loss, or a lack of confidence for any reason, it may be time to put some safeguards in place. A few simple steps will help you and your loved ones protect your money and prepare for the future.
Learn how to plan ahead to protect yourself and your money if memory loss, dementia or ill health start to take a toll.
Key actions you can take
- Set up a support team of people you trust – this could be family, friends, your doctor, bank, accountant, financial adviser or lawyer
- Spot the signs of scams and act fast if you suspect a scam
- Get support if you or someone you know is experiencing elder financial abuse – help is available
Source: Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at www.moneysmart.gov.au https://moneysmart.gov.au/manage-your-money-in-retirement/protect-your-money-in-retirement
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
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