What would happen to your money if you couldn’t manage it yourself?

It’s not a question most of us want to think about. But with Dementia Action Week coming up on 18 May, it feels like the right time to talk about it — gently and practically.

Around 982,000 people are currently living with dementia in the UK, and that figure is expected to pass one million this year.  One in three of us born today will develop some form of dementia in our lifetime.  Those numbers can feel overwhelming. But here’s what I find reassuring: there are practical, straightforward steps you can take right now that would make an enormous difference to you and your family, whatever the future holds.

I think of it this way. Planning ahead isn’t about expecting the worst. It’s about giving yourself — and the people who love you — choices and breathing room if things do change.

Why does it matter to plan now?

Before I became a financial adviser, I spent years working in older people’s services — managing Day Care and community support at Peabody, running projects to help isolated older people access the help they needed, and working on adult social care policy at Help the Aged. I saw first-hand what happens when families are suddenly navigating a dementia diagnosis without any financial plans in place. The stress isn’t just emotional. It’s practical and financial too.

The average cost of residential dementia care in the UK is around £71,500 a year — and for nursing care, it’s closer to £82,000.  What’s more, 63% of those costs are borne by families themselves.  Without the right legal documents and financial structures in place, your family may not even be able to access your accounts to pay for your care.

That experience is a big part of why I do what I do now. I wanted to help people put plans in place before a crisis — not after.

Have you set up Lasting Powers of Attorney?

This is the single most important step. A Lasting Power of Attorney (LPA) is a legal document that lets you choose someone you trust to make decisions on your behalf if you become unable to do so.

There are two types. A Property and Financial Affairs LPA covers your money, bills, property and investments. A Health and Welfare LPA covers decisions about your medical treatment, care and daily life.

You need both. And you need to set them up while you still have mental capacity — once a dementia diagnosis progresses, it may be too late.

Only around one in five UK adults has an LPA in place.  Among people over 55 — the group most likely to need one — 77% still don’t have one.  If you take just one thing from this post, please let it be this: look into setting up your LPAs.

Have you recorded where everything is?

This might sound simple, but having worked with families in exactly this situation, I can tell you it makes a huge difference. When someone’s memory starts to decline, their partner or children often realise they don’t know the login details, can’t find the paperwork, and aren’t sure which providers to call.

A clear, up-to-date record of your accounts, providers, policy numbers and key contacts can save your family weeks of stress and confusion. We have a booklet called My Important Documents that’s designed for exactly this — it gives you a simple way to keep everything in one place. You’re welcome to download a digital copy or drop into our office at Blackheath to pick one up.

Is your financial plan built to flex?

If you already work with a financial adviser, it’s worth having a conversation about how your plan would hold up if your care needs changed. Some questions worth thinking about:

• Could your pension and investment income cover care costs if needed?
• Is your money in the right mix of accessible and long-term investments?
• Have you thought about how your assets would be managed if you couldn’t make decisions yourself?
• Would your family know what to do and who to contact?

These aren’t uncomfortable questions. They’re kind ones. You’re making things easier for the people you care about most.

Have you thought about protection?

Some insurance products can help cover the cost of long-term care, and there are trust structures that can protect assets while keeping them available for your needs. These aren’t right for everyone, but they’re worth exploring — especially if you have a family history of dementia or other cognitive conditions.

What can you do this week?

I’d love for you to take even one small step. Start a conversation with your partner or family about what matters to you. Look into registering your LPAs — you can do this online through the government’s service, or through a solicitor. Pick up a copy of our My Important Documents booklet and start filling it in. And if you’d like to talk through how your finances could be structured to give you and your family more security, we’re always happy to have that conversation. There’s no obligation and no pressure.

Planning ahead isn’t about fear. It’s about care. And taking a few steps now could make all the difference later.

Rachael Childs, Financial Adviser, Ginkgo Financial Ltd

Will writing, probate and Powers of Attorney are not part of the Quilter Financial Planning Limited offering and are offered by Ginkgo Financial Ltd in its own right.

The Financial Conduct Authority does not regulate Will writing, Probate services, Lasting Powers of Attorney (LPA), legal advice, estate planning, trusts and taxation planning including inheritance tax planning.

The value of investments can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future results.