As women continue to face financial shortfalls due to gender pay gaps and ongoing caregiving responsibilities, new research from Thrivent finds some are forced to reckon with a whole other unexpected financial challenge: becoming widowed.
The findings, which surveyed 422 widows, reports that over half of women who lose a partner (51%) are either living paycheck-to-paycheck or struggling to manage their bills, likely due to a lack of preparation and unforeseen loss. Forty-one percent of widowed women said they did not have any financial conversations or a plan prior to their spouse passing away, and 60% of say the loss of their spouse was unexpected. Additional findings from Thrivent show that 29% of widowed women created a will with their spouse while they were together, 6% met with a financial advisor together, and 5% had developed a written financial strategy.
Aside from the emotional and mental distress that comes with losing a partner, it’s also one of the myriads of potential barriers women could face regarding their financial stability. It could coincide with affording medical costs and hospital bills, paying down debt, caregiving responsibilities, and other tackles.
“Immediately after this terrible loss, many widowed women face a tremendous financial burden without a solid plan in place,” said Teresa Powell, Thrivent financial advisor. “While nothing can protect against the heartache of losing a spouse, creating a financial plan with your spouse ahead of time is one of the greatest acts of love you can do for one another.”
Debt and financial uncertainty are among the top challenges facing women after the death of a spouse, reports Thrivent. Thirty-nine percent carried over $25,000 in debt following the loss of their spouse, while 10% reported being over $100,000 in debt. Another 71% said losing the financial support of their partner made paying off debt more difficult.
Similarly, 48% of widowed women said they felt prepared to manage finances moving forward, with most concerned about becoming the sole financial decisionmaker or paying monthly bills on time (70%). Others struggled with budgeting on a reduced household income (44%), managing and paying debt (37%), and continuing to save for retirement (21%).
As a result, some respondents had to made serious cuts regarding their finances, including withdrawing money from retirement accounts to cover expenses (14%) and reducing or halting retirement contributions (11%). Thirty-five percent had to condense or stop spending on non-essential items or activities, according to Thrivent.
The findings point to a serious need for proactive financial planning, whether that includes starting financial conversations early or working with an advisor to organize a plan in the event of a sudden loss, the organization adds. “Industry research shows an estimated 70% of women leave their financial advisor within the first year of their spouse’s death,” Thrivent reports. “This underscores the need for couples to work together now to build an experienced team that aligns with their values and helps them navigate complex financial decisions.”
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- More Women Express Concerns in Affording Future Finances and Health Costs
- Women Are Stressed in Balancing Caregiving and Work
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
