Amid rising rates of dementia, RBC Wealth Management helps Canadians plan ahead to secure their health and wealth

by The Globe and Mail:

In 2020, the number of people living with dementia in Canada was estimated to be around 600,000 – and that number is expected to more than double to 1.3 million by 2030.

These statistics may be alarming to some, but more striking is the devastating impact dementia can have on families and caregivers. Families may suddenly have to make difficult financial and health care decisions for a loved one while caregivers may find themselves overtaxed.

However, Canadians can take measures to look after their brain health, allowing them to live long and healthy lives – but they need to start early, and it requires looking after both their health and their wealth. That includes ensuring you have the funds to support at-home care as you age to starting important discussions with loved ones about important topics like assigning a power of attorney.

“The numbers tell us that everybody either knows somebody in their close circle or is, at maximum, another degree of separation from someone with dementia,” says Laura Tamblyn Watts, the founder and chief executive officer of CanAge, which recently released a report benchmarking the progress Canada is making in preparation for the rapidly growing rate of dementia across the country.

The statistics show that women are disproportionately impacted by dementia, in terms of both their health and their finances. Around 70 per cent of those living with Alzheimer’s – the leading cause of dementia – are women.

“Dementia is not only a women’s issue, but it affects women more, as caregivers, as family members and as individuals who may get the disease,” says Ms. Tamblyn Watts. “We also know how hard it is to build women’s financial resilience, so the concern is there that the impact would be financially significant and could result in poverty.”

Even though women are more likely than men to suffer from brain-aging diseases, for years, most of the research in this field focused on men’s brains. A lack of information on women’s brains can contribute to a late or misdiagnosis of dementia and Alzheimer’s, explains Lynn Posluns, the founder and president of Women’s Brain Health Initiative (WBHI), a global foundation raising money for women’s brain health research, education and awareness. This lack of research was why Ms. Posluns founded the organization. Together with RBC Wealth Management, WBHI is working to protect and prolong women’s brain health through research on brain-aging disorders and preventative education programs.

“What we now know is that by the time symptoms of Alzheimer’s occur, it’s likely the damage has happened 20 to 25 years prior,” says Ms. Posluns. “It really means Alzheimer’s is a midlife disease with symptoms that show up in old age.”

WBHI’s research has also shown that certain lifestyle choices can result in a 40-per-cent reduction in Alzheimer’s dementia, which has informed the six pillars of brain health: what you eat and drink; physical exercise; sleep habits; socialization; mental stimulation; and stress management.

Ms. Posluns says the earlier women can think about and make these healthy lifestyle choices, the stronger the preventative effect will be. With this in mind, WBHI launched a free mobile app called BrainFit™ – Habit Tracker in late 2022. It’s specifically designed to encourage people to make lifestyle changes that will promote positive brain health habits. An early start to wealth planning can also ensure you’re financially secure for any eventualities as you age.

There are more than 100 habits that individuals can practice, from getting more sleep to reducing salt intake, which is accompanied by an evidence section that explains why and how these habits impact brain health.

“We want to create a tool to help people with these six pillars because … creating and maintaining new habits is not easy,” explains Ms. Posluns.

Enjoying our later years, while preparing for the possibility of declining health, requires a detailed plan that takes into consideration both health and wealth. While it may be uncomfortable for some to talk about, it’s important to have these conversations early and often to ensure one’s wishes are known and put into writing, explains Vijay Parmar, president of RBC PH&N Investment Counsel, part of RBC Wealth Management. Without a detailed plan and having powers of attorney in place, you leave it to your family to determine your wishes or “legacy.” Without clear directions your family may disagree with one another and end up in unintended conflict.

“Oftentimes the health and wealth issues are faced when a loved one becomes ill and then they are forced into vivid focus,” says Mr. Parmar, who clearly sees the link between long-term health and wealth. “Historically, I think both topics have been cloaked in secrecy, but they are complex areas and they do require the expertise of specialists in those fields.”

Part of this planning process should involve the assignment of a power of attorney for personal care and the power of attorney for property. Yet, a 2022 IPSOS survey commissioned by RBC Royal Trust found that 65 per cent of Canadians still don’t have a power of attorney, with 10 per cent unclear about what these roles mean.

“I think the real benefit of having a power of attorney for personal care is that it gives you control and peace of mind because you get to appoint someone who you trust to make care and health decisions on your behalf,” says Mr. Parmar. “It’s the same with a power of attorney for property, who would handle things like banking, investments, business, buying or selling real estate, and even something as simple as paying your monthly bills.”

Creating powers of attorney and planning your financial future are most effectively done with assistance, says Mr. Parmar.

“It’s best to speak to people who have insights or expertise in these areas that can offer education and maybe even some solutions for you to consider,” he says.

“Where we see it connected into the wealth advisor space is many of our advisors deal with these issues on a day-to-day basis with their clients. They can offer tips or guidance. Perhaps even more importantly is they can help reduce the stigma that’s attached to these topics.”

You can learn more about the topics discussed in this article by listening to the Matters Beyond Wealth podcast hosted by Leanne Kaufman. The episode, “The race to deal with dementia in Canada,” features Laura Tamblyn Watts, founder and CEO of CanAge, Canada’s national seniors’ advocacy organization. The episode, “Six steps to help keep your brain healthy,” features Lynn Posluns, founder and president of Women’s Brain Health Initiative, a global foundation raising money for women’s brain health research, education and awareness.