Understanding the Role of Investment Managers in Supporting Clients with Dementia

Dementia affects over 700,000 Canadians, and that number is expected to nearly double by 2030, according to the Alzheimer Society of Canada. This growing reality presents immense emotional and financial challenges for individuals and their families. As cognitive abilities decline, managing personal finances, investments, and estate planning can become overwhelming. In Canada, investment managers and financial advisors play a crucial role in ensuring financial stability and peace of mind for clients living with dementia.

Understanding Dementia

Dementia isn’t a single condition. It includes several disorders such as Alzheimer’s disease, vascular dementia, Lewy body dementia, and frontotemporal dementia. Alzheimer’s disease accounts for roughly 60–70% of dementia cases in Canada. Each condition affects memory, reasoning, and decision-making differently. Recognizing these differences allows investment managers to tailor financial strategies that respect clients’ abilities while safeguarding their financial future.

Assessing Financial Capacity

Assessing financial capacity can be delicate. In Canada, legal and ethical frameworks differ by province. For example, under Ontario’s Substitute Decisions Act, determining whether a client has the capacity to manage property or finances requires a clear understanding of their ability to make and understand financial decisions.

Investment managers should collaborate with legal representatives or capacity assessors when there’s uncertainty. Additionally, involving family members, trusted contact person, or designated powers of attorney ensures the client’s best interests remain at the forefront. According to the Alzheimer Society of Canada, nearly one-third of Canadians living with dementia experience financial vulnerability, emphasizing the need for early financial planning and monitoring.

Building Trust and Rapport

Trust is the foundation of any successful financial relationship, especially when cognitive decline is involved. Investment managers must approach clients with dementia through empathy and transparency, often including family members or appointed attorneys in discussions. For instance, scheduling more frequent family meetings can help align everyone’s understanding of investment goals, spending patterns, and risk tolerance

Providing Ongoing Support and Communication

Dementia is progressive, meaning financial needs and cognitive capacity change over time. Investment managers should maintain regular check-ins to ensure financial plans remain appropriate. Open communication with caregivers and family helps identify new expenses, care arrangements, or housing transitions (such as moving from independent living to long-term care).

Collaborating with Caregivers and Families

Family caregivers provide approximately 470 million hours of unpaid care annually in Canada, often managing medical and financial responsibilities. Investment managers can support these caregivers by simplifying account structures, consolidating statements, and setting up automatic payments for recurring expenses.