Planning Ahead: Why Everyone Needs to Think About Cognitive Decline

None of us plan to lose capacity - which is exactly why the paperwork needs to be done before it is needed, not after.

It's more common than you think. In 2026, an estimated 446,500 Australians are living with dementia — and two in three of them still live at home, often still managing their own money and tax affairs. That number is expected to more than double by 2065. It's also not just an "old age" issue — around 29,000   Australians living with dementia are under 65.

The bottom line: this isn't a distant, hypothetical risk. It's something worth planning for now, while you're able to.

Why it matters for your finances

1. Powers of Attorney — get this sorted first You can only sign an Enduring Power of Attorney (EPA) while you're mentally capable. A standard Power of Attorney stops working the moment you lose capacity — an enduring one keeps going. If you don't have one in place before it's needed, it may be too late to get one.

2. Self-Managed Super Fund? Take extra care If an SMSF trustee loses capacity, the fund can become non-compliant, triggering serious tax consequences — and there's only a six-month window to fix it. The solution: have an EPA in place, check your trust deed actually allows your attorney to step in as trustee, and name a backup attorney (not just your spouse, who may face the same risk at a similar age).

3. Wills need updating while you're able A will is only valid if you understood what you were signing at the time. It's worth reviewing your will alongside your EPA, not as an afterthought.

4. Bank accounts and day-to-day access Joint accounts let a partner keep things running smoothly. Sole accounts don't — so make sure someone you trust has authority to help manage things, arranged while you're still able to set it up.

5. Choose your attorney carefully The right person protects you. The wrong one can create serious problems. Think it through, and if you're appointing more than one person, make sure they can genuinely work together.
A simple checklist to run through

• Do you have an EPA — and is it current?
• If you have an SMSF, does your trust deed let your attorney step in as trustee?
• Is your will up to date, made while you were clearly of sound mind?
• Can someone you trust step in on your bank accounts if needed?
• Have you told your attorney or family what you'd want?
• Do you have a backup attorney in place?​

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The takeaway
This isn't about expecting the worst — it's about making sure your affairs run smoothly no matter what happens. A short conversation now can save a lot of stress (and expense) later. If you'd like help reviewing your EPOA, SMSF arrangements, or estate plan, get in touch.

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