10 steps to navigating finances after loss

Of course, the loss of a loved is difficult for anyone, but we recently commissioned research for our Women and Wealth report which found that women particularly are effected due to their lack of experience and confidence when it comes to dealing in financial matters.

For many women, who may have relied on their partner’s financial expertise, taking control of their financial future can be overwhelming. However, with the right guidance and strategies, women can not only cope with this transition but also potentially thrive financially.

Here we will explore 10 essential steps and strategies for women to manage their finances effectively after their partner or husband passes away.

The first crucial step in managing your finances after a loss is gaining a comprehensive understanding of your current financial situation. Gather all financial documents, such as wills, bank statements, insurance policies, and investment portfolios. Create a list of all assets and debts, including real estate, retirement accounts, and outstanding loans. Knowing where you stand financially provides a clear starting point for making informed decisions.

Our Women and Wealth report found that 23 percent of women do not feel confident managing their finances, compared to just 11 percent of men. Even more worrying, nearly half of the women surveyed (44 percent) stated they are not confident that they are saving enough to achieve their long-term financial goals.

Consider consulting a financial adviser who specialises in assisting individuals after the loss of a spouse. A professional can help you assess your financial needs, goals, and willingness to take risks. They can also guide you through the complex process of estate planning, tax implications, and investment management.

At Schroders Personal Wealth (SPW), we begin with a free, no obligation conversation to understand if our service is right for you. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.

Review and update your legal documents, including your will, Power of Attorney, and beneficiaries on insurance policies and retirement accounts. Ensure that these documents accurately reflect your wishes, taking into account your new financial circumstances.

Making a budget is essential for maintaining financial stability. List your income sources and expenses, including everyday bills and long-term financial goals. A well-structured budget can help you live within your means and plan for the future.

Review your insurance policies, including life, health, and disability insurance. Adjust your coverage as needed to protect yourself and your family. If necessary, explore long-term care insurance options to provide financial security as you age.

An emergency fund is a financial cushion that can provide peace of mind during challenging times. Aim to save at least three to six months’ worth of living expenses, if you can, in a readily accessible account to cover unexpected costs.

Examine your retirement savings and investments. Consider the possibility of adjusting your retirement age or contributions to ensure financial stability in your later years, if you can afford to do so. If your partner had a retirement plan, understand the options available for spousal benefits and survivorship benefits.

Our Women and Wealth report highlighted the fact that more than one-third (39 percent) of women would not know how to access their own finances if anything were to happen to their partner. We also found that more than half of women (52 percent) don’t know anything about their rights to their partner’s pension in the case of a divorce or death.

Manage existing debts carefully. Prioritise high-interest debts and create a plan to pay them off systematically. Seek financial advice if needed to restructure debts or explore options for consolidating them.

Work with a qualified professional to update your estate plan. This includes specifying your beneficiaries, establishing trusts, and planning for the efficient transfer of your wealth to your loved ones, either during your lifetime or after you have passed away.

Empower yourself by gaining financial independence. This may involve pursuing new career opportunities, investments, or financial education. Building financial autonomy can provide a sense of control and security.

Losing a partner is undoubtedly a life-altering event, but it doesn't have to be a financial catastrophe. By taking proactive steps, seeking professional guidance, and understanding your financial situation, you can navigate this challenging period with confidence.

This article is for information purposes only. It is not intended as investment advice.

Any views expressed are our in-house views as at the time of publishing.

This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or part) without our prior written consent.

In preparing this article we have used third party sources which we believe to be true and accurate as at the date of writing but can give no assurance or warranty regarding the accuracy, currency or applicability of any of the contents in relation to specific situations and particular circumstances.