Protecting Older Australians from Financial Abuse
As Australians live longer, many of us are navigating the complexities of ageing—whether for ourselves, our parents, or other loved ones. Amid these important conversations about care, health, and legacy, there’s a growing issue we all need to be aware of: elder abuse.
While elder abuse can take many forms, one of the most common—and often the hardest to spot—is financial. It’s a difficult topic, but understanding what to look out for can help protect the people we care about.
What Is Elder Abuse?
Elder abuse is any act (or failure to act) that causes harm or distress to an older person, particularly when it occurs within a relationship where there’s an expectation of trust.
It’s not always physical or visible. In fact, financial abuse is now one of the leading forms of elder abuse in Australia. This can include situations where an older person is pressured into handing over money, property, or decision-making powers. Often it’s carried out by someone close to them—an adult child, relative, or trusted friend.
The World Health Organization defines elder abuse as:
“A single or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust which causes harm or distress to an older person.”
Financial Abuse: What It Looks Like
Financial abuse of older people can take many shapes. Some signs are overt, while others are subtle and difficult to detect without context.
Common examples include:
Misuse of bank accounts or credit cards
Someone might access an older person’s funds without permission, or use joint accounts inappropriately.Pressure to sign legal documents
This can include changes to a will, granting powers of attorney, or transferring property or shares—sometimes under emotional pressure.Inheritance impatience
This term is used when a family member pressures an older person to “hand over” assets sooner than planned—perhaps framing it as being ‘practical’ or ‘helpful’, but in truth motivated by personal gain.Unexplained changes in financial circumstances
For example, bills going unpaid, changes to beneficiaries, or large, unusual withdrawals.Withholding care or attention for financial reasons
Sadly, some carers (even within families) reduce their support or contact unless financial expectations are met.
It’s important to understand that financial abuse doesn’t only happen to those with significant wealth. It can affect anyone, and it’s often opportunistic—arising at moments when someone is vulnerable, dependent on others, or simply trying to do what they believe is best for their family.
Why It’s So Prevalent—and So Hard to Talk About
The National Elder Abuse Prevalence Study (2021) found that nearly one in six Australians aged 65 and over had experienced some form of abuse in the previous 12 months, with financial abuse reported by around 2%—a figure widely believed to be underreported.
Why so underreported?
Shame and embarrassment
No one wants to feel they’ve lost control, or that someone they love is taking advantage of them.Fear of conflict or losing family contact
Many older people avoid speaking up because they fear damaging relationships, or being left isolated.Trust and love
Financial decisions made within families are often informal, and assumptions about “who gets what” can lead to blurred boundaries.
What to Look Out For
If you’re an adult child, trusted adviser, or friend of an older person, some signs of financial abuse may include:
Sudden or unexplained changes in spending or banking behaviour
An older person appearing confused about their own financial position
Unpaid bills or lapses in essentials despite having adequate funds
New or withdrawn legal documents (wills, enduring powers of attorney)
Increasing dependence on one family member to “handle everything”
Isolation from advisers or longstanding support networks
Comments like “I’m just doing what they told me to,” or “They said it’s better this way”
Sometimes, it’s just a feeling—something that doesn’t quite sit right. In our experience, those instincts are worth paying attention to.
What’s Being Done
The Australian Government’s National Plan to End the Abuse and Mistreatment of Older People (2024–2034) places a strong focus on financial protections.
Some of the initiatives underway include:
Strengthening laws around Enduring Powers of Attorney (EPOA)
Several states are reviewing legislation to reduce misuse and improve safeguards.Public awareness campaigns
These aim to destigmatise the issue and encourage conversations within families.Support services like Compass (www.compass.info)
A national knowledge hub that connects people to information, legal help, and elder abuse support services.Training for professionals in finance, law and care sectors
Including advisers, bankers, and aged care workers—to help them spot the signs and respond appropriately.
What You Can Do
It’s never too early—or too late—to take steps that protect financial wellbeing as we age. Here are a few key things to consider:
Talk early and often
Having open conversations about future wishes, financial management, and estate planning can avoid misunderstandings and reduce the risk of coercion down the line.Use formal arrangements, not verbal ones
Ensure legal documents (wills, EPOAs, guardianship) are up to date, correctly witnessed, and created without pressure.Choose your attorney wisely
An Enduring Power of Attorney gives someone control over your finances and major decisions. It’s vital that this person is trustworthy, capable, and understands their legal obligations.Keep a paper trail
Maintain clear records of major financial transactions, particularly if assets are being transferred or shared between family members.Encourage a circle of trusted people
Isolation can increase vulnerability. Encourage older loved ones to maintain contact with professionals, social groups, and friends.Seek professional advice before big decisions
It’s easier to prevent abuse than to unwind it later. If something feels rushed or confusing, it’s okay to pause and get a second opinion.
Our Perspective
At Arrow Private Wealth, we often sit at the intersection of generations—helping clients navigate wealth transfers, aged care funding, estate planning, and broader family financial dynamics.
Because of this, we’re in a privileged position to observe when something might not feel quite right. We train our team to recognise potential red flags around financial abuse, and we approach these situations with care, discretion and empathy.
Our work isn’t just about managing money. It’s about protecting dignity, autonomy, and peace of mind—for our clients and their families.
Final Thoughts
Financial abuse can be subtle, emotional, and complex—but it’s also preventable. With the right planning, awareness, and support, families can protect their loved ones, preserve relationships, and make confident decisions about the future.
Every older Australian deserves to feel safe, respected, and in control of their own affairs. Keeping that vision front of mind is something we can all take part in.
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General Advice Warning:
Any general advice on this page does not take account of your personal objectives, financial situation and needs, and because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. Information contained on this page was correct at the time of posting.