Protect your money in retirement

Retirement should be a time to enjoy all you have worked for. Unfortunately, it is also when people may try to take advantage of your trust – or trick you out of money.

Keeping safe means protecting your money from people you may know, and people you don’t.

Protecting your money from people you may know

Elder financial abuse

Elder financial abuse is a form of financial abuse and a serious problem in Australia.

Many older Australians can be at greater risk of elder financial abuse as they are more likely to rely on family members, caregivers, or others for help in managing their finances. Many have significant assets, such as property, savings, or superannuation – which can create opportunities for abuse.

Some of the signs of elder financial abuse during retirement may involve:

• feeling intimidated or pressured to sign a power of attorney over to someone
• someone misusing a power of attorney and acting against your interests
• someone taking advantage of a family agreement to provide care for you in exchange for financial assistance
• being pressured into giving or loaning money, possessions or property
• being threatened or pressured to make or change your will
• someone taking advantage of your role as guarantor on a loan
• the sale or transfer of a property without your permission

For more information about the typical behaviours of elder financial abuse – and financial abuse more broadly, see financial abuse.

The 'Bank of Mum and Dad'

Some retirees choose to help their children and grandchildren buy a home, start a business or deal with living costs.

This can feel like the right thing to do, but make sure it’s your choice.

Ensure you are not being:

• pressured to gift or lend money
• asked to become guarantor for a loan you are not comfortable with
• made to feel guilty for not helping

Your options for support

If someone you trust is taking advantage of you, you may feel ashamed or embarrassed. These feelings are normal and are one reason many cases of elder financial abuse go unreported.

Support is available if you or someone you know needs help.

• Phone the free national elder abuse helpline, 1800 ELDERhelp (1800 353 374), to be directed to appropriate support services in your state or territory.
• Visit Compass - look under the Find Help tab for information, service providers and advice in your state or territory.
• Don’t be afraid to reach out to your bank or financial provider to seek support. Some financial providers have a dedicated specialist team to talk through your needs and safely help manage your finances.
• Stay connected with people you trust for support – this may include your doctor, accountant or lawyer, as well as independent family members and friends.
• Visit Older Persons Advocacy Network, or phone 1800 700 600, for information and support for older people experiencing abuse in the aged care system.

Protecting your money from people you don't know

Scams and fraud target people of all ages. But scammers can target older Australians, especially if they’re less familiar with technology, more isolated or looking to invest.

 Scammers use many tricks to convince you to part with your money. They often take time to get to know you and develop a relationship, so you feel like you know them. But they may avoid meeting you in person.

Common scams targeting older people

Some of the more common scams targeting older Australians include:

• Investment scams: scammers promise big payouts, quick money or guaranteed returns.
• Phishing scams: a scammer contacts you via phone, email, social media or text message and attempts to deceive you into giving out information such as your bank account details, passwords or credit card number. The scammer may pretend to be someone you know, or a business you regularly deal with, such as your bank.
• Dating and romance: a scammer poses as a potential partner on a dating app or social media. They build trust, then offer you an ‘investment opportunity’ or ask for money, gifts or personal details.
• Remote access or IT support scams: a scammer pretends to be a staff member from a large computer or telecommunications company and requests remote access to your computer, claiming your computer has a virus or has been sending error messages they want to ‘fix’.
• Prize and lottery scams: you are told you have won a prize, but must pay a fee to claim.
• Inheritance scams: a scammer poses as a lawyer or foreign official, and contacts you about an unexpected inheritance. They may provide fake documents to make it look real and ask you to share personal information or pay a series of charges to claim the inheritance.
• Rebate scams: you are told you are owed a refund from the government, your bank or a trusted institution, and are asked for your account details to process it.

How to protect yourself

Scamwatch, run by the National Anti-Scams Centre (NASC), says to protect yourself against being scammed: 

• Stop – Don't give money or personal information to anyone if unsure
• Check– Check who you're dealing with and ask yourself could the message or call be fake?
• Protect– Act quickly if something feels wrong

You can also:

• talk to someone you trust – ask them to check what is happening
• regularly check bank and credit card statements
• open your own mail
• if lending money, put it in writing and make a plan for repayments
• talk to your bank, accountant or super fund and voice your concerns

Find out more about protecting yourself from scams.

Act fast if you've been scammed

If you’re worried you have been scammed:

1. Don't send any more money. Block all contact from the scammer.
2. Contact your bank or financial institution immediately to report the scam. Ask them to stop any transactions.
3. Warn your family and friends about the scam, so they can watch out for potential follow up scams.

Find out more about what to do if you’ve been scammed.