With a background in financial journalism across national titles, Ruby loves helping people take control of their money and specialises in pensions, tax, banking and benefits.
Dementia can affect life in many ways, whether you have received a diagnosis yourself or are caring for a loved one.
While the emotional and physical impacts are often at the forefront of our minds, practical financial matters also need attention – especially as managing daily bills becomes harder, and often a loved ones needs to step in and help.
The Alzheimer’s Society estimates that one in three people born in the UK today will develop dementia.
For World Alzheimer's Day on 21 September, Which? outlines key financial steps to take after a diagnosis.
Admitting that managing money has become difficult can be very hard, as handling your own finances is a core part of your independence.
If you notice warning signs that a loved one is struggling, the charity Alzheimer’s Society says there is no right or wrong way to approach the conversation. Some people may benefit from you tackling it head on, while others may prefer small, digestible chats rather than trying to cover everything at once. Everyone is different, so try to find a way that works for them.
You might casually mention a storyline on a TV show, a comment from a doctor or a discussion from a local memory café to break the ice.
The charity says you should try to frame these conversations around supporting their independence rather than taking control away.
If they decline help initially, give them time to digest the idea without pushing. Sometimes, hearing the suggestion from a trusted family friend or a GP can make all the difference.
Setting up a power of attorney (POA) is one of the most important safety nets you can put in place for yourself or a loved one with dementia.
England and Wales, Scotland and Northern Ireland all have different legal systems for power of attorney. In England and Wales, lasting power of attorney (LPA) can cover property and financial affairs or health and welfare. In Scotland, a power of attorney can include continuing powers covering financial matters and/or welfare powers covering personal and healthcare matters. In Northern Ireland, an enduring power of attorney (EPA) covers financial matters only, not health and welfare.
A common myth regarding POAs is that receiving a diagnosis immediately prevents you from making one. But this isn't true.
The Alzheimer’s Society explains that you can still set one up provided you have the mental capacity to understand the document, your choice of attorneys and the consequences of the decision – which many people in the early stages of dementia still do.
If the person later loses capacity, relatives do not automatically gain authority to access their accounts or manage their finances. If a suitable power of attorney isn't already in place, you may need another form of legal authority, such as a deputyship in England and Wales.
You don't have to be a relative to act as an attorney. Which? member Karen stepped in for a friend with suspected dementia, using a solicitor to set up the LPA due to complex family dynamics. Having done it for her mum a few years prior, Karen was already familiar with the process when she stepped in to help.
Karen emphasised the importance of planning ahead and considering appointing more than one attorney. She said: 'Make sure you have a reserve, so that if it really does get bad, you can take a step back and pass the responsibility to a professional, such as a solicitor, or another close friend or family member.'
Which? member Alex secured a LPA before his stepfather was officially diagnosed with dementia, calling the document 'so essential' to managing his care and finances.
Because his mother and stepfather had kept their finances separate for 20 years, she had limited knowledge of where his accounts were, what credit cards he had or where his pension, savings or investments were held. The LPA gave Alex the legal authority to track everything down.
When his stepfather began withdrawing large sums of cash for no reason, the LPA allowed Alex to step in and take oversight of the bank accounts.
The LPA also meant he could help them by signing legal agreements for his stepfather’s care home, his mother's retirement flat and to sell their property to fund these costs.
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Find out moreThe Alzheimer's Society recommends sitting down together to conduct a full financial audit, if possible. Having a complete picture of a person's finances makes future decisions much easier for everyone involved. Alongside this, there are several practical ways to help manage day-to-day money:
Dementia symptoms can cause people to misplace cash, forget spending, mistrust banks or unsafely withdraw large sums.
Due to this, the Alzheimer's Society says managing everyday spending and bank accounts requires a careful balance between protecting someone’s money and preserving their independence.
Your financial audit can highlight which bank/saving accounts/cash and stock and shares Isas a person has, along with all the regular payments they make. Setting up a POA also lets you step in to manage these accounts, as banks can't release details without it if capacity is lost.
You can also ask the person's bank what safeguards and account controls it offers to help protect their money while still preserving their independence. Depending on the provider, options may include:
Find out more: banking with dementia, and how to manage your money and access support.
Notifying your energy and water suppliers about a dementia diagnosis is entirely optional. However, if you do, you can sign up for the Priority Services Register (PSR).
The PSR is a free UK-wide service that provides extra support, advice and safety measures from energy suppliers, network operators and water companies to vulnerable customers. You can join if you have reached state pension age, have a disability or are experiencing a personal circumstance such as being a single parent.
The register protects you against power or water cut-offs if you accidentally miss a bill payment. It also gives you priority support during outages, such as receiving temporary heaters or hosepipe exemptions.
To manage bills, setting up direct debits can help ensure payments are made on time, while a smart meter can automatically send readings to your energy supplier when it communicates correctly, reducing the need to submit them manually. A smart thermostat can let family members monitor heating remotely, if they're comfortable with that arrangement.
You may also be eligible for extra government support toward heating costs if you have a low income, such as the Winter Fuel Payment or Cold Weather Payments during periods of extreme cold.
For water bills, you can set up third-party notifications to send copies of bills to a relative or check if you qualify for capped rates through social tariffs or the WaterSure scheme.
Keep in mind that once a supplier knows about a diagnosis, they may ask to see an LPA before discussing the account with a family member.
A dementia diagnosis could qualify you for the Severe Mental Impairment (SMI) discount on your council tax. Note that England is updating this term to Significant Cognitive Impairment in April 2027, a change already made in Wales.
To qualify, you or the person you are living with must receive an eligible benefit – either attendance allowance or personal independence payment – and a medical certificate from a doctor.
The medical certificate doesn't confirm the diagnosis; it instead confirms the impairment is 'severe and permanent'. This means early-stage dementia might not qualify right away.
The discount amount depends on who lives in the home. If the person with dementia lives alone, their bill is reduced by 100% so they pay nothing. If they live with one other adult, the bill is reduced by 25%. If an adult child lives there as a carer, a separate carer’s discount might apply instead.
Finally, managing your council tax through direct debit is a good way to keep payments automated, as the rates only adjust once a year.
Managing bills such as mobile phones, internet and TV packages can become difficult after a dementia diagnosis. People may forget they have a contract, misplace devices or accidentally sign up for new plans.
Cancelling these accounts can be hard because companies often enforce long contracts and charge exit fees.
To avoid unexpected charges, families should check bank statements regularly to catch duplicate bills early. You can cancel new services without penalty using statutory cooling-off periods.
Registering an LPA with providers lets you manage or cancel accounts. You can also request third-party nominee access under Ofcom rules, so bill copies go to a family member or switch to month-to-month Sim-only deals.
Under Ofcom rules, providers must treat vulnerable customers fairly. So this means contracts signed by someone lacking mental capacity can be cancelled without exit fees by contacting the company’s vulnerable customer team or the Communications Ombudsman.
Which? member Beverly found this out first-hand when managing her mother's affairs after an Alzheimer's diagnosis. Even though she had registered her LPA, dealing with entertainment and telecom companies was still a struggle.
She found that customer service agents lacked basic training on LPAs and frequently demanded to speak directly to her mother to get verbal consent over the phone despite her advanced Alzheimer's.
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Those living with dementia can claim attendance allowance if they're over state pension age or personal independence payment if they are under. Neither benefit is means-tested, so your earnings or savings won't affect your eligibility.
Carers can claim carer's allowance, although strict rules apply to work earnings and how it interacts with the state pension. Carers over state pension age with a low income can also claim pension credit, which includes an extra carer addition often referred to as the carer premium. You can get this if you qualify for carer's allowance or have an underlying entitlement to it.
Which? member Kathryn applied for attendance allowance and secured a council tax discount after her husband's diagnosis. She used the extra income for home modifications, equipment and respite care. Her advice to others is: 'You have got to be ahead of the game all the time, and you must accept all the help that's given. Don't turn anything down.'
Care costs are rarely an immediate priority following a dementia diagnosis, but they become an important consideration over time. Planning for these expenses during the early stages can make managing future care a little easier:
Holly Lanyon, Which? money expert says: 'One thing that may be on your mind is whether you’ll need to move into a care home and how much it could cost.
This will depend on the type of care you need and your financial situation. Care in a specialised dementia care home is often more expensive than standard social care, but isn't always necessary.
The first step is to request a care needs assessment and means test from your local authority, which will establish the type of support you need and whether the council will pay towards it.
The council will pay towards your care if the value of your savings and assets falls below a certain threshold, but you may need to cover the costs yourself – known as ‘self-funding’.
Financial advisers who specialise in care fees can help you prepare for future care costs. The Society of Later Life Advisers (SOLLA) accredits advisers who are specialised in later-life planning and the financial needs of older people.'
