Japan’s aging population faces a challenge in protecting household wealth as cognitive decline rises. Half of the nation’s GDP is in the hands of older adults with dementia, risking trillions of dollars. The U.S. also sees a similar trend, with older adults controlling $6 trillion in assets. Dementia affects millions in both countries, impacting economies and public finances.

In Japan, nearly one-third of the population is over 65, with 4.6 million people having dementia. The U.S. has an 18% population over 65, expected to rise substantially. Dementia cases in the U.S. are projected to double by 2060, highlighting the need for awareness and planning to mitigate financial risks.

Dementia poses financial strain on families and public spending, requiring expensive care. This leads to weaker wealth transfers, rising poverty, and higher taxes. Early recognition of warning signs like forgetfulness and impulsive spending is crucial. Planning ahead, monitoring finances, and setting safeguards can help prevent financial losses due to cognitive decline.

As cognitive decline affects wealth management, older adults with dementia may hold 40% less financial wealth. Fraud targeting older Americans has increased, posing a significant risk. Awareness, early planning, and protective measures like dual authorization for transfers are essential to safeguard assets. Seeking professional guidance can also help families navigate financial risks associated with dementia.

Read more at Yahoo Finance: Japan’s aging crisis shows how dementia threatens economies and household wealth. The US is not immune