Adult children across various countries are increasingly taking on the roles of informal financial managers and tech support for their aging parents. This trend is driven by rising fraud risks, the proliferation of complex digital financial products, and the sheer difficulty older individuals face in navigating modern online systems. Tasks range from managing investments, updating nominations on bank accounts and insurance policies, and completing KYC revalidation, to handling forgotten passwords, two-factor authentication, and understanding device issues.
Many parents, despite being capable of independent living in other aspects, struggle with the digital world. For instance, some may be unable to pay bills online, understand text messages from doctors, or even adjust phone volume settings. This often leads to adult children spending significant time resolving these issues remotely, dealing with verification codes, and acting on their parents' behalf for various online transactions, from health insurance claims to ordering household items.
This informal role, sometimes dubbed the "family CFO" or "IT help desk," has become more prevalent due to longer life expectancies and the substantial intergenerational wealth transfer expected in the coming decades. The responsibilities can be extensive, requiring access to all pertinent financial information, including account numbers, passwords, and combinations for safes. It also involves setting up legal access and safeguards like Power of Attorney (POA) or "view-only access" to accounts, and connecting with a team of experts such as CPAs and wealth managers.
The challenge lies in balancing support with maintaining parental autonomy and dignity. While children aim to protect parents from scams and digital ineptitude, which cost Australians aged 65 and over nearly $100 million in 2024, there's a risk of "invisible disempowerment." Experts emphasize guiding parents and involving them in decisions rather than completely taking over their financial lives, to ensure they retain a sense of control and agency over their assets and daily affairs.
