Retirement Planning for Widows and Widowers
Jeff Martin is a financial advisor at Cornerstone based in Reno, NV. Jeff has earned the Life and Health Insurance Licensure and has passed the Series 65 examination. He enjoys being able to help clients create customized strategies for their portfolios based on their unique financial goals.
RETIREMENT PLANNING FOR WIDOWS AND WIDOWERS
Losing a spouse is one of the most difficult experiences life can bring, and it comes with profound changes, not just emotionally but also financially. As you navigate through this new phase of life, adjusting your retirement planning is crucial in helping to secure your financial future and understand your finances. Here are thoughtful insights and actionable advice on addressing retirement planning as a widow or widower.
REEVALUATE YOUR PORTFOLIO
First and foremost, taking a complete inventory of your financial status is essential. This includes all assets, debts, income sources, and investments. Understanding where you stand financially will help you make informed decisions moving forward.
List all assets, including savings, retirement accounts, real estate, and any investments. Identify all outstanding debts such as mortgages, car loans, credit card debts, etc. Calculate your total income, which may include pension benefits, Social Security benefits, annuities, or any other sources that put money in your pocket.
REVISIT YOUR GOALS
Your retirement goals might have been initially set with your partner in mind. It’s important to reevaluate these goals based on your current lifestyle needs and your long-term financial security. Consider whether you plan to stay in your current home or downsize. Adjust your monthly and annual budget to reflect your single-income status.
REVIEW YOUR SURVIVOR BENEFITS
Social Security benefits can be complex, particularly for widows and widowers. You might be eligible for survivor benefits based on your late spouse’s earning record. Timing is crucial with Social Security claims, so getting this advice can significantly impact your retirement planning.
If your spouse had a pension, you might be entitled to receive a survivor's pension. Contact the pension administrator to understand how your benefits might change. Additionally, if you have life insurance proceeds, consider how to best utilize them; whether it’s investing for additional income, paying off debt, or securing future expenses like healthcare.
RECONSIDER YOUR MEDICAL EXPENSES
As healthcare needs typically increase with age, having a solid plan for managing health expenses is critical. Investigate options for supplemental health insurance if Medicare falls short of covering all your healthcare needs. Consider long-term care insurance as well, which can cover the cost of in-home care, assisted living, or nursing facilities.
WHERE TO GO FROM HERE
Navigating financial planning alone can be overwhelming. Consider enlisting the help of a financial advisor who understands the nuances of retirement planning for widows and widowers. A professional can offer personalized advice and help you craft a strategic plan that aligns with your goals and needs. Retirement planning is not a set-it-and-forget-it type of deal. It’s important to regularly review and adjust your plans to adapt to any life changes or economic shifts. Stay informed about tax law changes, investment opportunities, and potential risks.
In charting a new path forward, remember that while the financial aspects are critical, your emotional well-being is also paramount. Lean on your community, engage with support groups, and consider counseling to help you through this transition. Your resilience and proactive planning will be key components in embracing this new chapter of your life with confidence and stability.
If you would like to discuss your options, please don’t hesitate to reach out to our team at Cornerstone to schedule a meeting. Call us today at 775.853.9033 if you’d like to see how one of our financial advisors could help you.
Based in Reno, NV, Cornerstone is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.