As a financial adviser, I meet people at every stage of life — from those just starting out to retirees enjoying their golden years. What I’ve observed is that while most Australians focus heavily on wealth creation, few pay equal attention to protecting what they’ve already built — especially when it comes to cognitive health.

The Rising Tide of Dementia in Australia

According to the Australian Institute of Health and Welfare (AIHW), dementia is now the leading cause of death in Australia. Over 433,000 Australians currently live with dementia, and that number is expected to reach 1 million within the next 40 years. What’s more concerning is the growing prevalence of younger-onset dementia — affecting people as young as their 30s, 40s, and 50s.

While age and genetics remain the major risk factors, lifestyle choices also play a role. A lack of physical activity, poor diet, and limited mental stimulation all contribute to cognitive decline. In short: to reduce your risk, stay mentally and physically active.

Why Financial Planning Matters Long Before Diagnosis

Dementia doesn’t just affect memory — it can strip away the ability to make sound financial and legal decisions. Once diagnosed, an individual may no longer have the legal capacity to create or amend a Will or power of attorney.

That’s why planning now is vital:

• Create or update your Will while you’re healthy.

• Appoint an enduring power of attorney who understands your values and financial goals.

• Consider insurance options like income protection, TPD, or trauma cover to offset potential lost earnings.

• Prepare a clear statement of assets and liabilities, so your family can step in seamlessly if needed.

The Takeaway

Cognitive decline can come unexpectedly. A proactive financial plan — with estate planning, insurance, and clear communication — ensures that if dementia strikes, your family won’t be left scrambling to pick up the pieces.

Planning for the unexpected isn’t pessimistic — it’s responsible.