A surviving spouse faces unique challenges in retirement, and not all of them are prepared for it. When the loss of a spouse occurs, there are a whirlwind of emotions and decisions that need to be made, and the last thing you want to do is worry about your finances.
A simple way to start planning for the surviving spouse is by having your personal documents in order. We encourage you to make sure your important documents are organized and managed. But far too often, this can sometimes get overlooked. It can be very overwhelming because most people have a large number of important documents. To simplify the process, it helps to begin by making a list.
In the preparation process, it is good to not only have your documents collected and organized, but also to have them easily accessible. This will take very little time and will save you a tremendous amount of worry. And, when you need something – which you will – you will know exactly where to get it. Likewise, it is important to have your documents in a central location that is easily accessible for those you trust to have access.
Once you have recorded and organized all your documents and decided on a secure place to store them, another step to help ensure that the surviving spouse is taken care is to take the time to meet with a financial professional to discuss all your retirement options. Having your documentation in order will help the financial professional provide a more thorough assessment of your situation and equip you with tools and resources to help you achieve your specific goals.
Also, a financial professional can help you understand how the loss of a spouse could affect a couple’s Social Security benefit. According to the Social Security Administration, the earliest a surviving spouse can start receiving the Social Security Survivors Benefits is at age 60.If the surviving spouse claims benefits at an earlier age, the benefits are reduced for each month before full retirement age.
In some cases, if a surviving spouse qualifies for a retirement benefit that is more than their survivor’s benefit, they can switch to their own retirement benefit as early as age 62 or as late as age 70. The rules for this option vary depending on the spouse’s specific situation. Determining when you should claim your Social Security benefit is very helpful in order to maximize your Social Security benefit. It is important to consult with a financial professional when deciding the best time for you to claim your benefit.
In our book “Pillars of Retirement Income,” we help couples look at all of their financial assets and make sure they are set up properly to accommodate the loss of a spouse. Prior to retirement, we look at pension payouts and help people make decisions that will ensure income needs for one or both lives. After retirement, we analyze income needs as they arise and encourage joint life payouts on annuities to maximize income for longevity of both.
Preparing for and dealing with the loss of a spouse can be overwhelming, but it doesn’t have to be. Visit our website at www.americanfinancialsecurity.net or call our office at 928-771-8368 to learn more about how you can prepare for the retirement you’ve worked so hard for and ways to protect your surviving spouse! We are committed to providing you with information to help make sound decisions and build a retirement on a solid foundation that will stand the test of time.
By Ronald Stevenson and Barbara Clark Stevenson
About the Authors: Ronald F. Stevenson and Barbara Clark Stevenson own American Financial Security, LLC. They specialize in Retirement Income Planning, Social Security Maximization, Tax Free Income Design, Personal & Corporate Tax Preparation and Planning. For more information, call 928-771-8368 or visit www.AmericanFinancialSecurity.net, 3112 Clearwater Dr., Suite B, Prescott, AZ 86305.
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