New Research Highlights Pre-Diagnostic Financial Risk in Aging Adults

Financial vulnerability tends to emerge years before any diagnosis of cognitive decline, according to forensic neuropsychologist Stacey Wood, Ph.D. Her clinical work identifies this as an early-stage phenomenon—often invisible until money has already changed hands.

Early Signs Hidden in Daily Routines

Subtle shifts in Instrumental Activities of Daily Living (IADLs) serve as among the earliest red flags. These include dressing more simply than usual—skipping nail or hair appointments, failing to update wardrobes—and preparing simpler meals or relying more heavily on take-out and leftovers. Unexplained weight loss and increased dependence on others for rides—even when legally capable of driving—are also notable indicators.

Researchers Mark Lachs and Karl Pillemer at Cornell University have demonstrated through longitudinal study that financial vulnerability surfaces significantly earlier than visible markers of functional decline. Their work helped define the field of elder mistreatment and underscores why these warning signs are routinely overlooked.

A More Troubling Pattern

A new person repeatedly appearing in a parent’s conversations—someone unfamiliar to adult children and unvetted by the family—constitutes a more serious concern. While many such relationships are benign, those initiated online warrant closer scrutiny of the other party’s motivations.

Undue influence rarely arrives suddenly. It typically progresses through isolation from existing relationships, fostering dependency, emotional manipulation, securing compliance, and culminating in the extraction of money or property. Families able to describe this pattern in detail position themselves more effectively to engage Adult Protective Services (APS) than those reporting only vague unease.

How to Initiate Sensitive Conversations

Normalizing money talk—not confrontation—is key to keeping parents engaged rather than defensive. Sharing one’s own financial or health information first can lower parental defenses and shift the dynamic from intervention to collaboration.

Peter Lichtenberg’s research confirms that while such discussions feel unnatural between parents and adult children, older adults are often more willing to discuss finances with friends or acquaintances than with their own offspring. The discomfort, therefore, stems from relational dynamics—not the subject itself.

Financial vulnerability is not tied to formal diagnoses. It arises well before mild cognitive impairment or the need for caregiving support, and most older adults experiencing it lack insight into its onset.

What to Do Once Concerns Are Confirmed

By the time families seek expert consultation, questions have shifted from “Should I be worried?” to “What do I do now?” The appropriate response depends on whether funds have been transferred, documents altered or signed, and whether the older adult retains capacity to understand and resist influence.

A probate attorney consultation may be the first step. A formal capacity evaluation can clarify decision-making ability. In California, civil remedies exist under the Elder Abuse and Dependent Adult Civil Protection Act (Welfare & Institutions Code §15600 et seq.) for cases where financial exploitation has already occurred.

Even informal, early concerns—raised before any assets are lost—expand available options. A close call may allow families to implement protective measures, such as designating a “trusted other” on financial accounts who receives alerts for suspicious activity.

If the Conversation Stalls

When direct discussion fails, retreat is not advised—but neither is forcing the issue. Regular check-ins on non-financial topics keep communication channels open. Sharing anonymized stories about friends or acquaintances who experienced scams or financial loss offers a low-pressure way to sustain awareness without singling out the parent.

Over time, these ongoing exchanges can lay the groundwork for jointly developing a concrete financial protection plan tailored to the parent’s evolving needs.

Lachs, M. S., & Pillemer, K. A. (2015). Elder abuse. New England Journal of Medicine, 373(20), 1947–1956.

Lichtenberg, P. A., et al. Research on financial exploitation vulnerability and barriers to family conversations about aging and money, Institute of Gerontology, Wayne State University; see also the Lichtenberg Financial Decision Screening Scale/Financial Exploitation Vulnerability Scale (FEVS).

Consumer Financial Protection Bureau & National Center on Elder Abuse — resources on recognizing and reporting elder financial exploitation.