Planning for the possibility of cognitive decline

investmentnews.com:

Cognitive decline is an unfortunate consequence of aging — one that affects as many as two-thirds of people. But new research suggests it hits several groups hardest: those who are white, male and have college degrees.

Financial professionals say that the results underscore the importance of planning ahead for Alzheimer’s and other forms of cognitive decline, regardless of clients’ demographics.

“The biggest challenge is that cognitive decline is multifactorial. It’s not like you go from being fine to having dementia. Some people have mild cognitive impairment, and they can have that for a long time,” said Carolyn McClanahan, director of financial planning at Life Planning Partners.

The study, “Retirement and cognitive aging in a racially diverse sample of older Americans,” was published last month by the American Geriatrics Society. The authors found that among recent retirees, the sharpest declines in cognition were seen in white men and people with higher education. Women generally showed slower rates of cognitive decline, with Black women exhibiting the smallest decreases after retirement.

The academic paper is based on data from more than 2,200 retirees who are part of a wider study on strokes. Tests for cognitive abilities covered verbal fluency, memory and global function.

While cognitive function may decline faster immediately after retirement, especially for some groups, “lifelong structural inequalities including occupational segregation and other social determinants of cognitive health may obscure the role of retirement in cognitive aging,” the authors of the study wrote.

Regardless, helping clients plan for cognitive decline well before it happens is critical, advisors said.

“Chances are, it’s going to happen