The prospect of outliving your partner or spouse is not one many of us care to think about too often. Like many potentially life-changing events, it can illicit emotions of helplessness, leave us frightened for the future and worried about our financial position.
Perhaps the Covid-19 pandemic has made you reflect on what were to happen if your ‘other half’ – whether male or female – were to die, or maybe you know someone who is going through the loss of their partner.
For women, it is an all too likely scenario, given that they typically outlive men. According to the latest official data from Public Health England, life expectancy in England in 2020 was 78.7 years for males and 82.7 years for females. This same trend plays out worldwide, with a World Health Organization report published in 2019 showing that women live longer than men everywhere in the world.
Following the death of a civil or cohabiting partner or spouse, many people inherit a lump sum, or a series of savings and investments for which they are now responsible. At a time of intense sadness and upset, this can feel truly overwhelming.
However, there are times when we all have to consider certain practicalities – they will provide the guidelines you need in times of severe stress.
The time to plan financially for a bereavement is before it happens. This might sound obvious, but it is easy to either find the conversation too difficult or to take a partner’s word for it when they say that, upon their death, “everything is in hand”.
Whether the death is sudden or expected, those who are left behind should not have to worry about their income or whether they can afford to keep their home. Instead, their priority should be grieving and figuring out the future.
It’s good to talk
While typically it is the husband that takes charge of long-term financial decisions within a marriage, good communication with a partner or spouse will limit and immediate financial shock following death.
If you are the person in your relationship who takes charge of most financial planning matters, then make sure you involve your partner in conversations with your investment manager or adviser. Both parties in a relationship or marriage should understand what will happen to any savings or investments in the event of one of you dying before the other.
Women may have been left out of many conversations like these in the past, but a 2005 report from the Centre for Economics and Business Research predicted women would own 60% of the UK’s wealth by 2025, and around a quarter of UK households would be led by female breadwinners.
All of this means women are playing a more equal role in household finances.
Taking control
However, even with a well-communicated plan in place, suddenly having full control of your shared finances following the death of your partner may leave you feeling fearful.
Yet, being responsible for your financial future is not something to fear. With the right adviser or investment manager by your side, you should feel supported enough to ask any questions, however simple.
Knowing that you are not dealing with financial decisions on your own will also be reassuring. In fact, the realisation that you have permission to make changes to your finances can even be empowering.
In time, you may feel confident enough – having sought advice or guidance – to switch investments to reflect your personal choices. This does not mean undoing all the financial preparations that your husband or partner put in place. Instead, taking action could result in being able to fulfil some of their wishes – such as passing on wealth to family members or making a charitable donation.
To understand more about how to ensure your finances are in control after a spousal bereavement, contact your nearest Quilter Cheviot regional office.