Consumer Credit Events Before and After Dementia Diagnosis

Abstract

Anecdotal evidence suggests that changes in thinking and memory due to dementia can lead to large financial losses. We test this using linked Medicare claims and FRBNY/Equifax CCP data. We find that missed payments increase up to 4 years prior to a dementia diagnosis and persist after diagnosis. Tracking financial outcomes could potentially contribute to earlier dementia diagnosis or help financial institutions identify suspicious transactions and take steps to protect consumers.