05 Sep Empowering Financial Strategies for Widowed Women

At Affetto Wealth, we recognize the unique financial and emotional challenges that arise after the loss of a spouse. It is a difficult experience for any spouse to lose the love of their life, and this loss impacts women significantly more so than men.

Among those who have ever been married and are 75 or older, 58% of women have experienced the death of a spouse, compared to 28% of men. Not to mention that one-third of women become widows before they turn 60.

To help widows navigate this complex time, here are four essential strategies for managing finances and ensuring long-term stability:

Take a Few Immediate Financial Steps

The first priority after losing a spouse is to manage the most time-sensitive tasks. Start by notifying relevant institutions such as banks, financial advisors, life insurance providers, estate attorneys, and CPAs. It is also valuable to gather and submit necessary documents, like a death certificate, to these parties to ensure access to financial accounts and receive support to manage all financial affairs effectively.

Review and Update Your Beneficiaries

Be sure to examine and update beneficiary designations on 401(k) accounts, IRAs, life insurance policies, and trusts. The passing of a spouse may require changes to these designations based on shifts in family dynamics or personal wishes. Contacting the administrators of these accounts will ensure current preferences are being adhered to.

Re-evaluate Budgeting and Emergency Funds

Start adjusting to the new financial reality by creating or revising a budget. That includes assessing all income sources, including any potential changes such as loss of Social Security Income, and reviewing updated spending to reflect changes in household expenses. If an emergency fund has yet to be established to cover unexpected costs, now is a great time to create a reserve to prepare for the unexpected and help prevent the use of bad debt.

Deep Dive into Your Insurance Coverage

Now is the time to reevaluate insurance needs to ensure adequate coverage is in place to protect the financial plan. This includes health, life, and long-term care insurance. If previous coverage was through a spouse’s work, independent options should be considered. A financial planner or insurance broker can help evaluate insurance needs and suggest appropriate policies and coverage levels.

Losing a loved one is never easy, but navigating these steps with thoughtful planning and professional guidance can be crucial to achieving financial stability and peace of mind.

At Coltiva Wealth, our advisors are here to support widows through this difficult transition and help them look to the future with anticipation instead of apprehension.

For personalized advice and to receive a ‘What To Do After Losing a Spouse Checklist,’ please reach out to us today.