More than half of widowed women staggered by financial woes

More than half of widowed women staggered by financial woes
New national poll of bereaved women reveals a “tremendous financial burden,” particularly for those who weren’t prepared.
JUN 12, 2024

While carrying on without one’s other half is hard enough, new research reveals that the pain for widowed women is compounded further by financial challenges, particularly for those who hadn’t prepared for the worst.

A new survey by Thrivent has revealed that more than half of widowed women in the US experience significant financial difficulties following the death of their spouses. The survey, conducted online in May 2024, included 422 female widows from across the nation and aimed to shed light on the financial preparedness and challenges they're confronted with.

According to the findings, 51 percent of widowed women reported living paycheck to paycheck or struggling to manage their bills after their spouse's passing. A notable 41 percent of respondents admitted they had not engaged in any financial planning or discussions prior to the loss.

"Losing a spouse is one of the hardest things anyone can experience," Teresa Powell, a financial advisor at Thrivent, said in a statement. "Immediately after this terrible loss, many widowed women face a tremendous financial burden without a solid plan in place."

Key statistics from the survey emphasize the importance of financial preparation among married couples. Sixty percent of widowed women described the loss of their spouse as unexpected, yet only 29 percent had created a will with their spouse. A mere 6 percent met regularly with a financial advisor, and only 5 percent had developed a written financial strategy.

Debt also emerged as a significant issue. Thirty-nine percent of widowed women carried over $25,000 in debt following their spouse's death, with 10 percent shouldering more than $100,000. Additionally, 71 percent reported that paying off debt became moderately or much more difficult after losing their spouse, highlighting the financial dependency many had on their partner.

Less than half (48 percent) of the widows surveyed felt prepared to manage their finances post-bereavement. Their primary concerns included becoming the sole financial decision-maker and paying monthly bills on time, which was a challenge for 70 percent of respondents. Other concerns included budgeting on a reduced income (44 percent), managing debt (37 percent), and saving for retirement on a single income (21 percent).

The survey also found that a majority of widowed women (68 percent) made immediate changes to their financial activities. Of these, 35 percent had to reduce or stop spending on non-essential items, 14 percent withdrew money from retirement savings to cover expenses, and 11 percent reduced or stopped contributing to their savings altogether.

“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," Powell said.

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.