World Alzheimer’s Month: 3 ways to protect your financial future

September is World Alzheimer’s Month.

As stated by Alzheimer’s Society, World Alzheimer’s Month marks a “global opportunity to raise dementia awareness and support people affected by the disease”.

Although it can be unpleasant to think about, dementia cases are rising in the UK, and as such, the likelihood of you or a loved one developing it is increasing.

As of September 2025, the NHS says that:

• Around 944,000 people in the UK have dementia
• This equals 1 in 11 people over 65
• By 2030, it is estimated that more than 1 million people will be living with the disease.

As you may know, dementia is an umbrella term that refers to illnesses that cause brain cell damage, like Alzheimer’s or vascular dementia. If diagnosed, you or your loved one could experience confusion, difficulty completing household tasks, forgetfulness, and physical impairment.

There are so many factors to think about when faced with a diagnosis like this, so it is understandable that financial considerations may fall by the wayside.

Nevertheless, your wealth could be significantly eroded by a dementia diagnosis in your immediate family. Here’s why, plus three ways to protect your wealth in case this happens to you.

Why having dementia could deplete your savings and make it harder to support your loved ones

First, let’s break down what a dementia diagnosis could cost, and the factors at play that may affect your wealth.

• You could be unable to work. If you’re not yet retired and have dementia, this would very likely prevent you from working for the rest of your life.
• You could lose track of your spending and financial information. One of the main symptoms of dementia is confusion and forgetfulness, which makes managing a mortgage, income, pensions, investments, and other crucial financial matters very difficult.
• You may need private care. If you live in England, unless your total assets are worth less than £23,250 – known as the Upper Capital Limit (UCL) – you will be in charge of paying for your own care in most cases. While you could be eligible for NHS Continuing Healthcare (CHC), this is very difficult to come by. According to Carehome.co.uk, in the North West, average dementia nursing care costs are £1,467 a week, rising to £1,775 for London residents. For those living elsewhere in the UK, the rules may differ.
• Your family might need to spend time supporting you. For example, your adult children could need to reduce their working hours to support your care arrangements and health. They could even opt to have you move in with them to preserve your safety and ensure you get the support you need.
• You could need to modify your home or move somewhere more appropriate for your needs. If you choose to remain in your home rather than going into a care facility, you could need to spend money modifying your property, ensuring that your facilities remain accessible and safe for you to use.

This is why it’s so important to protect your wealth ahead of time, where possible. Although it may not be possible to avoid certain costs, like care, you could put yourself in a more advantageous financial position by planning ahead.

3 ways to protect your wealth from a serious illness like dementia

1. Register your Lasting Powers of Attorney

A property and financial affairs Lasting Power of Attorney (LPA) lets you nominate one or more “attorneys” – trusted friends, family members, or professionals – to help you manage your finances and assets if you need.

Similarly, a health and welfare LPA gives attorneys the power to make decisions on your behalf if you lose mental capacity after being diagnosed with dementia or a similar illness.

There are several common misconceptions about capacity, attorneys, and next of kin.

Two key myths are:

• “My next of kin can step in and handle my finances if I am not able to make my own decisions.” This is false. If you lose mental capacity, your next of kin won’t be automatically granted access to your financial affairs. If you don’t have the right LPA, they’ll need to apply to the Court of Protection for “deputyship” which can take several weeks and be very costly. This could also mean they’re locked out of your finances when they need access to them – including your bank accounts, insurance policies, and mortgages.
• “I can just take out an LPA when I need one.” You must have full mental capacity when you register your LPAs. Once you have been diagnosed with dementia, it may be too late.

So, it’s worth registering your LPAs and discussing the responsibilities with your chosen attorneys sooner rather than later.

2. Take out a package of financial protection

Financial protection is a measure that could help you weather any unexpected storms as you get older, including a potential dementia diagnosis.

• Life cover offers your loved ones a tax-free payout that could help them pay for essential immediate costs, like your funeral. If you’re diagnosed with a terminal illness, some providers will pay out early so you can make arrangements ahead of time.
• Income protection may be linked to your employment, but if you’re diagnosed while you are still working, you could receive a percentage of your income from your insurance provider until retirement age. This buffer may prevent you from depleting your savings too quickly.
• Critical illness insurance offers the opportunity of a one-time tax-free lump sum to help you manage your wealth while being too ill to earn.

If you’re unsure what kind of protection you need, or what it could pay for, working with us could help you put together a package of cover that works for you.

3. Have hard conversations with your family now

It is all too easy to put off difficult conversations. Nobody wants to think about the possibility of getting sick.

This said, without telling your close loved ones about the protections you have put in place, or expressing your wishes should the worst happen, it could make things much harder down the line.

Get in touch

Here at Kellands, our financial planners work with individuals and families who are living with, or have experienced, diseases like dementia and the grief that can come with such diagnoses.

We always take an empathetic approach that focuses on the financial needs of the individual, advocating for you and your loved ones during a difficult time.

Email us at hale@kelland.co.uk, or call 0161 929 8838 to learn more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning or Lasting Powers of Attorney.

Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

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