You probably didn’t plan on becoming a widow/widower before retirement. So how do you start, starting over? As you move into your new life, this is no time to go it alone.
When most people think of widows and widowers, they envision individuals at the end of retirement having spent all their years together, while succumbing to their final years struggling alone. However, recent statistics from the U.S. Census Bureau tells us that our stereotypes of the average widow are likely incorrect. The average age of a widow these days is actually age 59. And because women typically live longer than men, many women could be supporting themselves financially for another 30 or 40 years.
If you have found yourself being a window/widower before you hit retirement, you mor than likely have an abundance of questions on “what next?”. Concerns you’re probably facing include:
- Dealing with pension survivor options
- Social Security spousal benefits
- Life insurance proceeds
- Changing the title on your home and other assets
- Making sure your bills continue to get paid on time
- Updating your will and estate planning documents
- and possibly much, much more.
It’s time to take control and take advantage of the help that’s available for you. That’s where the retirement income experts at CKS Summit Group come in.
Working with a trusted retirement advisor like CKS will help you tackle the decisions that need to be made immediately. Then, once those are taken care of and you’re in a better place, we can move onto the decisions with long-term financial implications. We are available to answer questions and support you during this difficult time.
Here are our top three considerations you should take when unexpectedly facing retirement alone.
1. Social Security Survivor Benefits
Surviving spouses can alleviate some stress by attacking the to-do list in stages. Starting with notifying the Social Security Administration.
Social Security survivor benefits provide income for the families of workers who are deceased. If you are eligible to collect Social Security benefits upon retirement, your spouse or dependents may be eligible to collect them in your stead in the event of your death or vice versa. It sounds straightforward, but as with so many federal programs, the rules and qualifications can be fairly complicated…
In most cases, if you had been married for at least nine months when he/she died, you may be eligible to draw Social Security income benefits based on his/her record as early as age 60 (approximately 71.5% of the deceased’s benefit if drawn at this earliest age or 100% of the deceased’s benefit if drawn at full retirement age).
You may be eligible to switch to your own benefit at a later date — something to consider if it’s a higher amount than your spouse’s when you reach your full retirement age or age 70. If you and your spouse were both receiving Social Security benefits at the time of his/her death, you will not continue to receive both benefits. You will only receive one — whichever benefit was the highest.
2. Life Insurance
There are two potential sources of life insurance coverage to pursue: insurance you and your husband/wife bought through an insurance agent and any employer policies that might exist.
In the first case, contact your insurance agent about your spouse’s passing. The agent can help you navigate the necessary paperwork to get things moving in the right direction. And don’t be surprised if the insurance agent encourages you to invest the death benefit into another product; the product most commonly suggested is a variable annuity. While this may seem tempting as a way to gain more income in retirement via an annuity payout, do some due diligence before making this decision.
If your husband/wife was employed, check with the human resources department at their employer to see if he had any life insurance there.
3. Long-Term Financial Planning
As well as other immediate actions such as cancelling ongoing payments your spouse had, re-titling bank accounts, and estate planning, you need to look at some of the long-term decisions you’re going to have to make; Eventually, you will need to update your own estate plan and life insurance policies. You will also need to take a look at your investment portfolio and make some decisions about the direction you want to take in retirement. You’ll want to decide if you want to move or continue living in the home you shared with your partner. Perhaps now you have an alternative wish list such as buying a new car or a different home closer to family and friends?
These are all important things to consider and potentially discuss with your trusted advisors. These topics are never fun to talk or think about now, but they are even less fun to talk about later if you have not planned well.
We’re Here for You
The transition to widowhood is never easy. It can take weeks, months, or years even when you are prepared. While turning to friends and family is crucial at a time like this – and these people may provide essential emotional support – it is unlikely they can serve as a source of dispassionate expert financial advice. No one can take the place of a lost spouse, but you can create a team of experts and delegate to them the responsibility of planning for the future.
At CKS Summit Group, our focus is to bring you fresh new ideas for your retirement income when unexpectedly facing your golden years alone. Reach out to us here today to set up a complimentary strategy session and get you on your way to a solid financial and retirement plan.
As all-consuming as the present may be, keeping your eye on the future and brighter days ahead can help with the healing process.
