You might not assume that there is a future without your current spouse, but this is a major retirement and estate planning mistake and one that could put you in a very difficult situation, years into the future. When you fail to plan for the possibility of becoming a widow or widower, difficult financial and life-related decisions must be made in the immediate aftermath of one of the most challenging aspects of your life; losing a beloved spouse.
Retirement planning must incorporate what each individual would do if they were to suddenly lose the other spouse. The U.S. has more than 20 million people in the category of widows and widowers and 1.4 million are added every single year. But there is a serious disconnect when it comes to married couples engaging in the kind of financial planning that could protect their loved ones. More than half of people who have already lost a spouse said they had no plan in place for how they would proceed on their own, and more than three-quarters of retirees who were married said they wouldn’t be prepared for retirement financially if their spouse passed away. Losing a spouse can be one of the most challenging things to happen to a married person. When losing a loved one, there are so many different decisions to make immediately that it can easily feel overwhelming. Those who already lost a spouse recently shared some of their most popular advice, stating that the loss of a loved one was an appropriate time to reevaluate the retirement strategy, to update estate plans and beneficiaries, to notify financial institutions and employers about the loss, to continue to pay bills on time and locate important documents, and to avoid making any major decisions.
Anyone who is transitioning from the workforce to retirement should consider planning for their own individual retirement as well as with their spouse. This can help to ensure that issues are not ignored, and that appropriate planning has occurred. If you or someone you know has questions about the estate planning process, contact a knowledgeable attorney today.
