Protecting Your Financial Future While Caring for Someone with Alzheimer’s

One in nine Americans age 65 and older is living with Alzheimer’s disease—more than 7 million people nationwide, including an estimated 255,600 individuals in Illinois. Beyond the physical and emotional toll, the disease places a significant financial burden on families, often threatening long-term financial stability.

January is Financial Wellness Month, and the Alzheimer’s Association is encouraging individuals and families to take proactive steps toward financial planning. Preparing early can help create a sense of security in the event of an unexpected caregiving crisis related to Alzheimer’s or other forms of dementia.

“Six in ten Americans are working while also managing Alzheimer’s caregiving responsibilities,” said Delia Jervier, Executive Director of the Alzheimer’s Association Illinois Chapter. “Many are forced to reduce their work hours, adjust schedules, take unpaid time off, or leave the workforce altogether. The resulting loss of income can have a profound impact on a family’s overall well-being.”

According to the 2025 Alzheimer’s Association Alzheimer’s Disease Facts and Figures report: (https://www.alz.org/getmedia/ef8f48f9-ad36-48ea-87f9-b74034635c1e/alzheimers-facts-and-figures.pdf)

• The lifetime cost of care for a person living with dementia averages $392,874.

• Dementia caregivers face nearly twice the out-of-pocket expenses of non-dementia caregivers ($12,388 compared to $6,667).

• Nearly half (48%) of caregivers must cut back on basic necessities such as food, transportation, and medical care to afford dementia-related expenses, while many rely on personal savings or retirement funds.

• Nearly two-thirds of Americans mistakenly believe Medicare covers nursing home care or are unsure whether it does.

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In Illinois alone, approximately 314,000 people provide unpaid care for a family member or friend living with Alzheimer’s disease. As care needs grow over time, families often face increasing costs for services and support. “Financial literacy is especially important for caregivers,” said Jervier, “It gives them the tools and confidence to manage their own financial health while supporting someone living with Alzheimer’s.”

To help families navigate these challenges, the Alzheimer’s Association launched a free online education program, Managing Money: A Caregiver’s Guide to Finances  (https://training.alz.org/products/4355/managing-money-a-caregivers-guide-to-finances). The program offers practical guidance, including:

• Plan early: Early financial planning benefits both caregivers and individuals living with the disease.

• Start the conversation: Involve trusted family members or friends to discuss financial wishes and future plans.

• Protect against fraud: People living with dementia are at higher risk for financial exploitation and may struggle with decision-making.

• Organize finances: Take inventory of assets and resources, including savings, insurance, retirement benefits, government assistance, and VA benefits. Financial planners or elder law attorneys can help.

• Create a backup plan: Designate a trusted backup agent for power of attorney and consider sharing responsibilities among multiple people.

For more information and financial planning resources, visit the Alzheimer’s Association’s Plan for Your Financial Future webpage (https://www.alz.org/help-support/i-have-alz/plan-for-your-future/financial_planning) or go to alz.org.