Bridging the Gap: Seniors, Finances, and Spousal Loss

By June Duncan

Losing a spouse is an inevitability for virtually all married seniors. But this is one area where there is no strength in numbers. The pain is the same, and it’s a weight the surviving partner will carry to their grave. But life goes on, and many personal and financial decisions must be made. Here are some tips on how to help your aging loved one tackle some of the most common issues they might face..

Asset assessment

It’s common for one person in a relationship to handle the expenses. When this is the half that has died, the surviving spouse must first assess their assets and learn to plan a budget. You can help them in many ways. First, compile a list of income. This might be employment income, Social Security, dividends, annuities, or insurance payments. U.S. News & World Report, asserts that this calculation should be based on net income. Once your loved one knows how much money is coming in, you can help them create a budget. It may be necessary to cut expenses that don’t directly contribute to their well-being if the figures suggest they will fall short each month.

Final expenses

As your loved one no doubt knows all too well by this point, Social Security doesn’t do a lot to cover final expenses. If their spouse did not have burial insurance, they might have paid $10,000 or more out of pocket for funeral expenses. Help your loved one prevent this type of financial detriment to their heirs by encouraging them to invest in final expense insurance, which can cost as low as $18 per month (or as much as $286 per month), according to Lincoln Heritage Funeral Advantage. Money left over beyond funeral expenses may be used to settle any outstanding debts, which can also be a burden on the family. If your loved one isn’t computer savvy, help them research online before making a commitment.

Medical cost

An inevitability of age is functional decline and subsequently higher-priced medical care. If your loved one is 65, they are eligible for Medicare. It’s a huge help but, unfortunately, it does not cover everything. As many as one in three seniors opt for a Medicare Advantage plan, which is an extension of their primary benefits that can help save them money in the short- and long-term. Although they cost more per month, zero deductibles and extensive prescription drug coverage often make these alternative plans cost-effective. Many seniors spend $2,000 per year more on primary and maintenance medications for issues such as diabetes and high blood pressure. If only for this reason, it may be prudent to consider additional insurance.

Financial scams

Perhaps the saddest of all financial concerns that pop up after the death of the spouse is financial scams targeting the elderly. In the weeks and months after the death, your senior loved one may be at a higher risk of being targeted by criminals looking for easy prey. It happens more often than you think, so much so that the AARP suggests that recently widowed individuals delegate financial responsibilities to a family member after their spouse’s death. Other scams to help them identify include medical identity theft, telephone-based faux charities, and IRS impersonators.

Housing expenses

When the surviving spouse is left with little more than memories, paying for their current residence may become a problem. Help your senior tackle the emotional decision to downsize by pointing out the benefits of doing so. This includes having the opportunity to live closer to family, less maintenance and eliminating stairs and other mobility obstacles.

Your loved one may not be in the best emotional state to make good decisions upon losing a spouse. Help them avoid further financial detriment by offering a helping hand, a calculator, and a listening ear.

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