When we think about threats to our retirement money, the rising cost of living, ongoing global conflicts that are driving energy prices higher, and volatility in the stock market are likely among the first things we worry about.
But according to new research from LIMRA, there may be something else to fear: Cognitive decline. According to an April 2026 report, cognitive decline is becoming a greater risk for adults aged 65 and older. And those risks come at a high price. LIMRA says that this decline can cost "the average household wealth losses of roughly $124,000" through things like missed payments, poor financial decisions, and even fraud. Fortunately, these experts say that early awareness of this issue could be the key to avoiding it. Here's what they say you need to know about aging and money management.
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Dr. Jessica Meers, a Licensed Clinical Psychologist and Founder of Rhythm Wellness, a Houston-based psychotherapy practice, says that many people are surprised to learn that subtle cognitive changes can begin as early as our mid-to-late 40s. "In most cases, these shifts aren't noticeable in everyday life until much later, often in the 60s or beyond," she continues, noting that things like chronic stress and poor sleep can accelerate this process.
"During deep sleep, the brain performs essential maintenance tasks, such as clearing waste products, consolidating memories, and regulating emotional functioning," Dr. Meers says. "Over time, consistently inadequate sleep doesn't just leave you feeling fatigued; it can gradually affect the cognitive abilities you'll rely on as you age."
What are Some Early Warning Signs of Financial Cognitive Decline
When people think about cognitive decline, Dr. Meers says they often picture obvious signs, such as forgetting names and becoming disoriented. "In reality, some of the earliest warning signs can show up in financial decision-making," she continues, saying that she tells people to watch out for:
Difficulty comparing options Increased impulsive spendingTrouble following complex financial informationBecoming more susceptible to high-pressure sales tacticsThat last point is an important one, according to Dr. Meers, because she says financial scammers are particularly skilled at exploiting these subtle vulnerabilities.
Related: New Research Says Early Retirement Could Actually Shrink Your Brain
How Can You Protect Your Finances from Cognitive Decline
One of the most effective safeguards you can create to keep your money protected involves establishing protective systems before they are needed. "Automated savings, predetermined spending guidelines, and involving a trusted family member, financial advisor, or attorney can provide valuable protection later on," Dr. Meers says.
But Srbuhi Avetisyan, Research and Analytics Lead at Owner.One, says that you need to decide who you are going to trust while your thinking is still clear, since sometimes those who are closest to us may not automatically be the best fit for this job.
"Our research across 13,500 wealthy families in 18 countries suggests this approach has a fundamental flaw: The people you trust most with your finances are statistically the most likely to act in their own interests when you become vulnerable," she says, adding that the most effective safeguard "is a documented, automated, tamper-proof system that transfers the right financial information to the right family members at the right moment without any human intermediary who can be pressured, corrupted, or simply negligent."
And if you're worried about cognitive changes, Dr. Meers says you shouldn't wait for certainty before seeking help. "In my experience, early awareness and intervention can have a profound impact on long-term outcomes."
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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