Emotional and financial challenges
There’s no doubt that coping emotionally with the death of a partner can be difficult, what with managing your grief, planning a funeral and more.
There can be financial challenges too, especially if you’re a widow. A 2023 Canada Life survey found 74% of women didn’t have a financial plan in place for when their spouse died.
They also said the most challenging aspects about being a widow were:
- Adjusting to loss of income: 49%
- Navigating legal/financial paperwork such as executing an estate: 46%
- Being prepared for a financial emergency: 43%
Tips to financially prepare for losing a spouse
Become more involved in day-to-day money management
Get to know as much as you can about your finances before that difficult day arrives, including where your money is invested and what accounts it’s invested in.
Review your spending
You may need to adjust your current budget and your financial plan after your spouse dies. Look at whether you have an emergency fund and how stretched you’d be with paying your bills if you lost your partner’s income. Create a new “single income” budget to predict what expenses you might need to trim to be able to live within your means.
Work with an advisor
You can also work with an advisor who can provide advice and help you make financial decisions.
A Canada Life survey found:
- Those who worked with an advisor were more likely to have things like life insurance, a will and a financial plan.
- 67% of widows with an advisor had wills/trusts in place, versus 30% who didn’t.
- 64% of those with an advisor had life insurance, versus 40% who didn’t.
- 45% who had an advisor also had a financial plan in place, versus only 6% who didn’t.
- Many respondents indicated having an advisor helped reduce stress and increase confidence in managing finances.
Review your estate plans
Make sure you both have wills and powers of attorney. Understand the complete financial picture for both partners, including investments, debt, insurance and workplace benefits, and whether you can keep any workplace coverage if your spouse died.
Review your need for insurance
If don’t have life insurance, disability insurance or critical illness insurance, work with an advisor to determine what insurance you should have. If you’ll lose use your partner’s health and dental benefits, check your need for individual health and dental insurance.