{"id":7156,"date":"2018-11-12T07:47:40","date_gmt":"2018-11-12T11:47:40","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=7156"},"modified":"2018-11-12T07:47:40","modified_gmt":"2018-11-12T11:47:40","slug":"facing-the-financial-shocks-of-widowhood","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=7156","title":{"rendered":"Facing The Financial Shocks of Widowhood"},"content":{"rendered":"\n\n\n
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\"\"<\/a>After reviewing a new\u00a0<\/span>survey of widows\u00a0<\/a>from Merrill Lynch and Age Wave, I\u2019m worried about the wives of America, or more specifically the wives who, sadly, will likely one day experience the financial shocks of widowhood.<\/span><\/p>\n<\/div>\n

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Women are more than three times as likely as men to lose their spouse. But very few wives seem prepared to be able to manage their finances if their husbands die, according to the Merrill Lynch\/Age Wave study,\u00a0Widowhood and Money: Resiliency, Responsibility and Empowerment<\/em>. Its survey of more than 3,300 respondents (2,638 widows and 741 married) found that only 14 percent of widows were making financial decisions by themselves before their spouse died.<\/p>\n

That low percentage is astonishing to me. And it was for Maddy Dychtwald, co-founder and senior vice president of Age Wave, too.<\/p>\n

The Biggest Surprise in a Report on Widows and Money<\/h3>\n
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Maddy Dychtwald<\/figcaption><\/figure>\n

\u201cThat finding is scary, and it was the biggest surprise to me from our report,\u201d she told me when I caught up with her a few weeks ago in Oklahoma City at the\u00a0Investor Protection<\/a>\u00a0Trust\u2019s Forum on Investor Education.<\/p>\n

What\u2019s more, the survey noted, 69 percent of widows said \u201cbecoming the sole financial decision maker\u201d was the top financial challenge of widows. The survey\u2019s disconcerting results made both Dychtwald and me want to do what we can to help wives step in and manage their money if they become widows, and we have some advice below.<\/p>\n

Losing a spouse is not only heartbreaking, it\u2019s wrenching. In the survey, \u201cmost widows and widowers \u2014 78 percent \u2014 describe the loss of their spouse as the single most difficult and overwhelming life experience,\u201d Dychtwald told me. \u201cAnd two-thirds say that they had so many things to do, they were not sure where to even start.\u201d<\/p>\n

Most Women Manage Money Alone at Some Point<\/h3>\n

\"\"<\/a>The fact is, as I wrote in my book,\u00a0Money Confidence: Really Smart Financial Moves for Newly Single Women,<\/a><\/em>\u00a0nearly all women manage their money solo at some stage of their lives either because they are single, divorced or widowed. Yet 53 percent of widows surveyed by Merrill Lynch and Age Wave said they and their spouse did not have a plan for what would happen if one of them passed away and 76 percent of married retirees said they wouldn\u2019t be financially prepared for retirement if their spouse died.<\/p>\n

One reason this is so worrisome: half of widows experience a household income decline of 50 percent or more after the death of a spouse, according to the nonprofit Women\u2019s Institute for a Secure Retirement (WISER).<\/p>\n

Read on Forbes<\/a><\/strong><\/p>\n

Another: there\u2019s so much financial and legal paperwork widows must deal with immediately after the death of a spouse. Just a few tasks, according to the widows surveyed: filing for survivor\u2019s Social Security benefits, obtaining a death certificate, filing as beneficiary for a spouse\u2019s retirement accounts and getting permission to access their spouse\u2019s accounts.<\/p>\n

\"Top<\/a>Credit: Merrill Lynch<\/span><\/div>\n

3 Suggestions for Wives and Widows<\/h3>\n

Here are three money suggestions for women, from Dychtwald and me, to make things easier on themselves:<\/p>\n

1. While you\u2019re married, learn as much as you can about personal finances in general and your household\u2019s finances in particular.\u00a0<\/strong>Said Dychtwald: \u201cNot only do women outlive men, they often marry guys who are a few years older. That\u2019s seven extra years of life. It\u2019s not a laughing matter. That\u2019s something women have to think of, plan for, gain financial knowledge about and gain financial confidence about \u2014 so they have financial peace of mind.\u201d<\/p>\n

You can boost your knowledge by learning about money matters in books and online. For instance, there\u2019s\u00a0From Here to Financial Happiness: Enrich Your Life in Just 77 Days<\/a><\/em>\u00a0, a new book by personal finance writer Jonathan Clements; Next Avenue Managing Editor Richard Eisenberg recently interviewed Clements in this Next Avenue\u00a0post<\/a>. Check out\u00a0DailyWorth.com<\/a>, which was recently acquired by noted personal finance journalist Jean Chatzky. The Investor Protection Institute\u2019s\u00a0iInvest.org<\/a>\u00a0site has excellent free guides explaining stocks, bonds and mutual funds. And the WISER site offers retirement planning tutorials for women. A personal plug: check out my top tips for widows in this short informal YouTube\u00a0video<\/a>.<\/p>\n

For unbiased guidance, you might consider hiring a fee-only planner with the\u00a0Certified Financial Planner<\/a>\u00a0designation.<\/p>\n

2. Make money talk part of your marriage.\u00a0<\/strong>Many married couples avoid having these discussions because money is a touchy subject. But, Dychtwald said, \u201cWe took vows \u2018to death do us part,\u2019 but we also took\u00a0love<\/em>\u00a0vows. One way to express our love is through some financial planning.\u201d<\/p>\n

Financial worries were cut in half for widows who planned ahead, according the survey. Just 36 percent of widows who were involved in financial planning said they worried they wouldn\u2019t be able to support themselves immediately after the death of their spouse; by contrast, 64 percent of widows who hadn\u2019t planned had that worry.<\/p>\n

\"Most<\/a>Credit: Merrill Lynch<\/span><\/div>\n

3. After the death of a spouse, press the pause button.<\/strong>\u00a0\u201cThe first thing a widow should do is keep her hands off anything that doesn\u2019t require immediate financial decisions,\u201d said Dychtwald. \u201cYour emotions are running so high. If there is someone in your family, a friend who you can take advice from during that time, lean on them a little bit. It\u2019s OK.\u201dIt\u2019s important, she added, to be able to take that moment to experience grief. Gathering yourself, and gaining the necessary emotional fortitude that is required, is essential.<\/p>\n

Relying on the financial expertise and clearheadedness of others when you become a widow can be a big benefit to you. \u201cAsking for help of people you trust helps you build that financial confidence. You take charge little by little,\u201d said Dychtwald.<\/p><\/blockquote>\n

Finally, as Dychtwald told me, \u201cwidowhood is a big deal, and we shouldn\u2019t discount it.\u201d But, she added, \u201cby gaining financial knowledge and confidence, you can build resiliency and courage and come out the other side feeling financially empowered.\u201d<\/p>\n

This story is part of our partnership with\u00a0<\/em>Chasing the Dream: Poverty and Opportunity in America<\/a>, a public media initiative on poverty and opportunity. Major funding is provided by The JPB Foundation.\u00a0<\/em><\/p>\n

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By\u00a0Kerry Hannon,\u00a0<\/a><\/span>Entrepreneurship and Personal Finance Expert<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n

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Kerry Hannon has covered personal finance, retirement and careers for The New York Times, Forbes, Money, U.S. News & World Report and USA Today, among other publications. She is the author of a dozen books including\u00a0Money Confidence: Really Smart Financial Moves for Newly Single Women<\/em><\/a>,\u00a0\u00a0Great Jobs for Everyone 50+: Finding Work That Keeps You Happy<\/em>\u00a0and Healthy…and Pays the Bills<\/em><\/a>,\u00a0Getting the Job You Want After 50<\/a>,<\/em>\u00a0Love Your Job: The New Rules for Career Happiness\u00a0<\/a><\/em>and\u00a0What’s Next? Finding Your Passion and Your Dream Job in Your Forties, Fifties and Beyond<\/em><\/a>. Her website is\u00a0kerryhannon.com<\/a>. Follow her on Twitter\u00a0@kerryhannon<\/a>.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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