When we think about retirement planning, we tend to accentuate the positive. These days, growing older is often portrayed as the “golden years” with one new adventure after another! If we follow that thought process, retirement is like an endless resort vacation. 

While it’s true that aging can and often does bring times of great joy, satisfaction, and discovery, it’s also true that – sooner or later – with age comes loss. Moreover, while in many U.S. households women and men have achieved a high degree of financial parity, still it’s often women who face the greatest burden of adjustment when their husband passes away. On top of the difficulty of dealing with grief, many widows find themselves overwhelmed by financial and legal issues that they now have to handle on their own. 

Recently, Kiplinger brought us this article helping widows better understand how to navigate finances following the loss of a spouse. In the article, certified financial planner Lauren Randall Journeay White reminds aging women to get involved in financial planning now. That way they’ll be better prepared to make decisions when managing finances solo. 

Widows Dealing with Grief Also Encounter Major Financial Hurdles  

“Studies show that women, on average, are expected to live nearly six years longer than their male spouses,” White begins. “With this comes a significant wealth transfer: Empower.com projects that roughly $34 trillion in assets will move to women in the next decade, much of it due to the loss of a spouse.” 

This leaves women facing an unpleasant reality after retirement, White writes. The emotional toll aside, the loss of a spouse potentially presents “major financial hurdles” during a time of real challenge for women and families. “Alongside grief, end-of-life planning, estate issues and probate, many new widows also find themselves suddenly responsible for managing their savings and investments alone,” she writes.  

For Some Widows, Financial Responsibility is Totally Unfamiliar 

Despite generational changes in expertise and financial savvy over time, White points out that many wives find the role of financial responsibility unfamiliar after their spouse passes away.  

She writes, “In countless households, one spouse or the other — often the man — traditionally manages investments, taxes, wills and trusts and estate matters, leaving their loved ones without the experience or, more important, a plan to effectively manage their financial future. I know this because I’ve seen it with my clients, and I’ve experienced it in my own family.” 

When White’s father passed away, her mother was “immediately overwhelmed with a litany of to-do lists” and tasks that included writing an obituary, making and finalizing funeral arrangements, notifying companies of his passing, waiting on death certificates, and mountains of paperwork. All of this came on top of dealing with her own deep grief.  

Widows Can Feel Overwhelmed by Tasks and To-Do Lists 

In the case of White’s mother, this sense of being overwhelmed wasn’t an issue of lacking experience. Her mother was a seasoned bank executive, with a better idea than most of what financial tasks were ahead of her after her husband’s passing.  

But being capable wasn’t the issue, as “no one can account for the grief process, especially while being bombarded with endless to-do lists. To say it was a lot is an understatement,” White writes.  

White watched her mother navigate these rough waters and took an important lesson from it: “While nothing can change the loss of a spouse, there is much women can do ahead of time to empower themselves to be confident, engaged decisionmakers for themselves and their families when it comes to finances.” 

Never too Late: Start Now to Involve Yourself with Family Finances 

White suggests that whether your family uses a financial advisor or your spouse handles all of the finances, you should insist on being involved in financial meetings or reviews, even if you initially feel out of your element.  

“Use these opportunities to ask questions and build your understanding of your family’s savings and investments,” she writes.  

Importantly, she also suggests keeping a record of certain information in a safe place, including approximate balances for each investment account, bank names and locations, issuing insurance companies, money management firms, names and contact info for key advisors or managers, account numbers, and passwords.  

“You don’t need to become a financial expert,” White writes. “But the more you understand where your money is, how it’s being invested or saved and who is helping you manage it, the smoother your transition will be should you become the sole financial decision-maker.” 

When Faced with Loss of a Spouse, First Deal with Grief 

Even the most organized planners can be completely thrown into disarray by loss, says White, so she offers two essential first steps to help her clients navigate this difficult time.  

First, process the emotions: “Grief can upend even the best-laid plans,” she writes. “Give yourself space to process your emotions — whatever that looks like for you. Trying to make complex decisions while navigating immense emotional pain can lead to costly mistakes or missed details.” 

She adds that it’s crucial to protect your emotional bandwidth, even when faced with the wave of calls and questions that follow a spouse’s passing. “Taking time to grieve will give you the clarity to make sound financial decisions and the strength to support your loved ones,” she writes.  

Work with the Advisor Who’s Right for You, Not for Your Spouse 

Next, work with the right advisor. “The right advisor can make a tremendous difference in your financial and emotional well-being,” she explains. But, she adds, that doesn’t mean you have to stick with the advisor your spouse picked, especially if they were hired on a while ago. This could be the right time for a fresh start.  

“If you’re starting fresh or seeking a second opinion,” White writes, “use the ‘Multiple Meeting Test’: meet with a potential advisor two or three times. Be open about your fears, challenges and hopes for the future. As you share, pay attention — are they just waiting to pitch a product? Are they actively listening, seeking to understand your story before offering recommendations?” 

She adds that it’s ideal to treat these meetings like a job interview. Notice whether you’re talked over, dismissed, rushed, or pressured into making quick decisions. If so, walk away. “The advisor you choose should be someone you have confidence in and connect with, someone who makes you feel seen, respected and ready to help shape your financial future,” she writes.  

The More You’re Prepared, the More You’ll Feel Empowered 

There is nothing that can truly mitigate the change that comes after losing a spouse, White says, “but it doesn’t have to leave you powerless.” An ounce of planning, along with the right guidance and support, can “transform one of life’s most painful transitions into a chapter of confidence, clarity and control.” 

You don’t have to know everything, she assures us. You just need to know you’re not alone.  

“By taking small, simple steps today, you’re not only safeguarding your future, you’re also honoring your story and your strength and stepping up for those who love you,” White concludes. “Grief may be the beginning, but growth is where you’re headed.” 

Rajiv Nagaich – Your Retirement Planning Coach and Guide 

The long-awaited book by Rajiv Nagaich, called Your Retirement: Dream or Disaster, has been released and is now available to the public. Retirement: Dream or Disaster joins Rajiv’s ground-breaking DVD series and workbook, Master Your Future, as a powerful planning tool in your retirement toolbox. As a friend of AgingOptions, we know you’ll want to get your copy and spread the word.  

You’ve heard Rajiv say it repeatedly: 70 percent of retirement plans will fail. If you know someone whose retirement turned into a nightmare when they were forced into a nursing home, went broke paying for care, or became a burden to their families – and you want to make sure it doesn’t happen to you – then this book is must-read. 

Through stories, examples, and personal insights, Rajiv takes us along on his journey of expanding awareness about a problem that few are willing to talk about, yet it’s one that results in millions of Americans sleepwalking their way into their worst nightmares about aging. Rajiv lays bare the shortcomings of traditional retirement planning advice, exposes the biases many professionals have about what is best for older adults, and much more. 

Rajiv then offers a solution: LifePlanning, his groundbreaking approach to retirement planning. Rajiv explains the essential planning steps and, most importantly, how to develop the framework for these elements to work in concert toward your most deeply held retirement goals.  

Your retirement can be the exciting and fulfilling life you’ve always wanted it to be. Start by reading and sharing Rajiv’s important message. And remember, Age On, everyone! 

(ori9inally reported at www.kiplinger.com)