New elder financial abuse working paper

A new Age Concern / Victoria University Policy Studies Institute review on the financial abuse of older people in New Zealand calls for action.

Financial abuse of older people in New Zealand – a working paper by Judith A Davey and Jayne McKendry, November 2011

Judith A Davey	Jayne McKendry

Synopsis

Work to prevent and combat financial elder abuse (FEA) is fraught with difficulty, but work to ensure that older people are free from abuse in all its forms is a vital issue now and for the future.  FEA has serious impacts on the health and wellbeing of older people, but it is under-reported and under-recognised.  There are definitional issues around what range of behaviours should be included in FEA, around the types of relationship in which it can occur, and the concepts of ‘trust’ and ‘vulnerability’ in relation to older people.  FEA may occur in a range of different circumstances and has been explained in different ways, underlining the complexity of the problem and the varying ways in which it can be approached.  It has dimensions related to family functioning, to the care of vulnerable adults and to the operation of services for older people, especially financial services. Intertwined are issues of responsibility and entitlement, ethics and opportunity.

Added to definitional difficulties are measurement problems.  Prevalence rates for FEA are extremely difficult to establish. Fear, shame and stigma may prevent older people from reporting abuse.  Physical and cognitive disabilities add another barrier.  We know from New Zealand data that FEA and, often associated, psychological abuse, are probably the most common forms of elder abuse and neglect.  Its incidence appears to be increasing, associated with the ageing of the population and increased longevity.  Evidence from New Zealand and overseas reveals that close family members are the most common perpetrators of FEA.  Their victims are often very old people in poor health and especially women.

Challenging ageism and negative attitudes to older people is a key means to prevent FEA. This calls for public education and awareness campaigns among carers, professionals and service providers.  Financial literacy, social connectedness and access to support will protect older people.  Strategies to help families understand their roles vis-à-vis older people in managing their assets safely and respectfully can also help to prevent FEA.  Service providers from all sectors can play their part in looking for warning signs of abuse and knowing how to take appropriate action when these are apparent.  Other government action in the preventive sphere includes policies on consumer protection and legal measures, such as enduring power of attorney procedures.

How to deal with FEA once it has occurred depends on how the problem is conceptualised. Measures may include mandatory reporting, but its effectiveness is contentious.  Banks and other financial institutions have to grapple with obligations of privacy for their customers and have yet to initiate robust measures against FEA.  FEA may be seen as a social services issue, suggesting measures such as helplines and multidisciplinary approaches.  In New Zealand elder abuse and neglect prevention services have both preventive and remedial functions but lack of funding precludes full coverage.  Seeing FEA as a justice issue brings in legal and quasi legal responses – criminal law, civil law and alternative dispute resolution.  But, as well as the cost of legal action, the deep seated nature of abuse may mean that these do not offer sure solutions.  They may also be too detrimental to family relationships for older people to pursue.  Many instances of FEA may be improper rather than illegal.  The act may be one of omission or ignorance rather than malice. Dependence and family feelings may cloud the question of consent on the part of an older person.

No single response will tackle the complex issue of FEA.  Numerous questions about the nature of the problem, causes, effective prevention and response, remain unanswered. More discussion is needed, but also more evaluation of possible responses in the New Zealand context and a clear commitment to the elimination of FEA in this country.

Authors

The authors welcome further comment on the paper, especially suggestions on how work to prevent and combat financial elder abuse in New Zealand can make progress.  Please send your comments to –

Judith A. Davey, Institute of Policy Studies. Judith.Davey@vuw.ac.nz or
Jayne McKendry, Age Concern New Zealand.  Jayne.McKendry@ageconcern.org.nz

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