3 Strategies For Planning For Widowhood And Protecting the Surviving Spouse

For many married couples, one of the most challenging components of retirement planning is imagining what life would be like if one of them died and the other was left alone.

Many strategic decisions that will simplify life for a surviving spouse can (and should) be made as early in the planning process as possible. Delaying just increases the likelihood that vital planning opportunities will be missed, leaving the widowed spouse to make critical decisions during a tough and stressful time.

1. Do you have a plan in place to replace lost income?

Some expenses may be lowered, but the surviving spouse's overall costs are unlikely to be cut in half. A 20% cut is more feasible; if support is required, the surviving spouse's cost of living may increase.

With that in mind, every married couple should be aware of this. If both spouses have claimed Social Security benefits and one spouse dies, the lower of the couple's two Social Security checks will be eliminated automatically.

2. Do you have life insurance as part of your overall strategy?

A couple's income replacement strategy may include life insurance. However, locating and acquiring the appropriate coverage is only the beginning. It's also a good idea to plan how to invest the money from your insurance payout once you get it.

3. Do you have a will and a power of attorney?

Many younger retirees neglect this element of the retirement jigsaw, but it can be a real pain to deal with if left undone.