"Memo to Bartlett's: Add an asterisk next to Ben Franklin's quote that "in this world nothing is certain but death and taxes."

We can also be sure that most husbands will die before their wives do. According to the U.S. Census Bureau, 80% of women live longer than their spouses and often by many years -- 14 years on average.

Given those facts, it would seem that husbands would do more to ensure their wives' transitions to widowhood didn't result in poverty. But that's often not the case, according to a report (.pdf file) by Boston College's Center for Retirement Research. "

 

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Do you have a plan?

 

 

As much as I hate to think about it, I have to be practical. My DH is 14 years older than me, so if statistics follow course, I'm looking at quite a few years alone. I am young enough to keep working for a while as it is, so with my frugality addiction and money management skills, I don't worry too much about it.

One never knows whether they would marry again. I'm crazy about DH, he's my best friend, and I just can't imagine someone taking his place. I think I would seek out companionship, but not another marriage. Its more loneliness I worry about now than financial matters, barring a catastrophe. My crystal ball is always a little foggy.

My dh and I are pretty young but I've had a friend widowed in her early 30s due to a car accident. She had a 2 year old and a 3 month old baby. She is financially ok b/c (1) she had job skills; (2) her husband worked for an insurance company so I am guessing he had life insurance. It took her a long time to emotionally get back on her feet, especially with 2 babies but I don't think money was something added to her burden. She is now happy 5 years later and planning to re-marry.

DH and I both have life insurance policies that cover the cost of the house plus extra. If one of us would go, the house would be able to be paid off which gives some measure of financial comfort in that hard, hard, time. WE both sign up for our employers "free" insurance policy--a $25,000 policy that we don't have to pay premiums on as long as we are employed. It's called the "funeral plan" b/c it is about the cost of a funeral these days. All it took was signing up. We know each others' finances inside and out so there would be no surprises. I understand all our bills as does DH. We know our debts and assets. The only thing that I'm not sure about is each others' retirement should something happen prior to retirement age. But I know who to contact through each employer.

Plan for the worst, hope for the best.

Health issues play a part in that.  I have many health issues that would almost guarantee a shorter life span, my husband has none - except that he was raised in a smoker's household and smoked awhile himself. There is only 8 months difference in our ages.  So he probably will outlive me. Edey

I have a friend who's been married for 46 years years. Her husband is 65 and just retired. This past June, he was diagnosed with lung cancer is its spreading rapidly. He went to several doctors before deciding on a treatment plan. Only one doctor had the guts enough to say "Go home and get your papers/finance in order". Everyone else is for pulling out all the stops. At first her husband figured he could handle treatments but after the first round of chemo/radiation, he's needed two blood transfusions already. Its given my DH and I a lot to think about. If I was diagnosed with an advanced case of anything, I would want to save our money and just opt for pain management. Even though friends have fairly decent coverage, in four months, they've spent a mere fortune in co-pays, expensive drugs and time in and out of hospitals. Widowhood is bad enough but to face a barrage of medical bills to boot would compound the pain. And sadly, everything you've worked for in retirement can disappear with a big diagnosis.

Toni B.:

And sadly, everything you've worked for in retirement can disappear with a big diagnosis.

I fear this too, that there will be nothing left for whoever survives or nothing left to pass on to our son.  Edey

Jane_b:

As much as I hate to think about it, I have to be practical.

It's not something pleasant to consider but it is practical. Once it's come, it's harder to deal with, I am sure.

This is an area that we are very poorly prepared for but one we hope to remedy as finances improve.

 

We need to do a will but other then that we are set.

Though dh didn't have a job when dd was born we got life insurance then.  Now we both have $250,000 each.  plus he has a benefit  2yrs worth of salary as life insurance payout from his work. have insurance on line of credit.

Our house worth has doubled since we bought it.  We have some retirement savings.   So if one of us goes, the house would be paid off by the life insurance plus some left over.  and the line of credit would be gone.

I would be better off since I would get the 2 years salary too.  plus there are govt benefits , his cpp etc. I guess it depends when one of us passed away.

health insurance is not a problem since I am in Canada.  disability would be a problem though.  I know he has some though work.

We have thought about it but not something I want to think about!!!  I like having him around :)

My DH is disabled and uninsurable, so my main focus is making sure my income can cover the basic monthly budget to support DD and I.  I look at the monthly budget and realize that with a few minor adjustments (mostly lowering expenses since there would be just 2 of us instead of 3) DD and I would be fine.  It would be tight and it would be harder to save, but we would be okay.  Sometimes I wonder how many years I'll get to be with DH.  He's 12 years older than me and has several health issues from the traumatic brain injury, like seizures, etc.

When I retired I took a spousal benefit option - the income will drop 30%, but she will continue to have an income, there is $140k life insurance on me and more than that in savings/investments, and she will continue to have medical coverage. I'm six years older than her so the reality is that I will probably go first, something she doesn't like to talk about. With the income drop however, there is one less person to feed, clothe, etc. and and one less vehicle to maintain (we have two now) so I think that will allow her to keep the current standard of living. There is zero debt for her to concern herself with, and she would sell the house we're in because she knows she can't keep it up herself. She'd buy a much smaller house or condo. So while she won't be wealthy she won't be in poverty either.

Without all that I wouldn't have dared to retire.