Typically, we address the possibility of cognitive decline when we design their retirement income plan by utilizing the right amount of protected lifetime income, so the number of decisions around their wealth that need to be made later on when they may be experiencing cognitive decline is significantly lower and they have enough income coming in every month no matter how long they live. We'll also get their loved ones involved in the process early, when possible, so they're aware of what we've done to minimize the crucial asset decisions that may need to be made later on in life. Whenever we feel the client may be showing signs of cognitive decline we make sure to bring in their loved ones to make sure the decisions being made are in the best interest of the client even if the client may want to do things that aren't in their best interest due to their declining cognitive abilities.
Cognitive decline affects client's financial decision-making, creating challenges for wealth management advisors who must balance ensuring informed choices with respecting client autonomy. For example, a wealth management firm in our network worked with a long-term client with mild cognitive impairment, illustrating the need for tailored strategies to support clients facing cognitive challenges.