Older Aussies considered 'fair-game' by inheritance impatient family members

Eileen Wood

As published in The Senior

24 September 2024

Heart-wrenching reports of the financial abuse of elderly Australians have reduced members of a national investigation to tears.

The report of an inquiry by the Parliamentary Joint Committee on Corporations and Financial Services into financial abuse is due at the end of 2024.

Financial elder abuse is the third most common form of elder abuse, with a survey by the Australian Institute of Health and Welfare showing more than 80,000 people falling victim a year.

Federal Member for Swan, Zaneta Mascarenhas, sits on the Parliamentary Committee.

She said it is surprising how pervasive financial abuse is and how it affects so many different segments of society regardless of socio-economic class, age and cultural heritage.

"At the beginning (of the inquiry) we did not appreciate the scale of this problem," Ms Mascarenhas said.

"There's been multiple times where some of the stories have been so heart-wrenching that there's been tears during the hearing."

Ms Mascarenhas said the inquiry had spoken with banks, insurers, advocacy groups and victim-survivors.

"This isn't just a financial issue; it's a sign of deep-rooted ageism. People wrongly think that once someone gets older, their money and assets become fair game," she said.

"An estimated $3.5 trillion is expected to be passed down between generations over the next 20 years, without proper protections, a big chunk of this wealth could be siphoned off by abusers."

Financial elder abuse can include being pressured to give or loan money, possessions or property, having money or property taken without permission, being pressured to change a will, or financial decisions being made for an older person without their consent.

Sometimes referred to as "inheritance impatience", financial abuse usually involves close family members.

Nearly one-third of victims reported experiencing more than one form of abuse.

A 2022 report by Deloitte Access Economics for the Commonwealth Bank estimated the cost of financial abuse (across all ages) was $5.7 billion.

Ms Mascarenhas wants financial organisations to make products safer and simpler for elderly customers so they can't so easily be abused.

"We must detect the abuse early and ensure we have the right laws and systems in place," she said.

If you are the victim of elder abuse, free and confidential help is available from 1800ELDERHelp (1800 353 374).