A new study reveals that financial difficulties may be an early indicator of Alzheimer’s disease in older adults, in addition to memory issues and personality changes. The study, conducted by the Federal Reserve Bank of New York and Georgetown University, found that older adults who were eventually diagnosed with Alzheimer’s were more likely to fall behind on mortgage and credit card payments several years before their diagnosis.
Using data from the Federal Reserve Bank of New York’s Consumer Credit Panel and the Master Beneficiary Summary File from 2000 to 2017, the study showed that credit scores of older adults with Alzheimer’s diagnosis were consistently lower as the diagnosis approached. Credit scores were on average 1 to 2 points lower three to five years before diagnosis and 4 to 6 points lower in the year preceding diagnosis. After diagnosis, credit scores continued to decline, averaging more than nine points below the baseline.
Georgetown Economist Carole Roan Gresenz, one of the study’s authors, noted that the results were clear and consistent, with credit scores reflecting cognitive decline over time. The authors also suggested that the information on credit outcomes could potentially be used to develop machine learning algorithms for identifying individuals at risk for Alzheimer’s diagnosis.
