The W word is tough to talk about, but we need to be better prepared
<p dir="ltr">Widowhood isn’t a topic that is widely discussed. Yet with some women left financially ruined after the unexpected death of their spouse or partner – especially if they suddenly find themselves single parents. It is a discussion we should be having, both to support newly widowed women and to lessen the financial burden on those who may follow.</p>
<p dir="ltr"><em>‘My partner is gone and I don’t know how I’m going to make ends meet.’ </em>This is a situation that no one wants to face, yet many women sadly do. And it isn’t just elderly women or those in retirement.</p>
<p dir="ltr">Between 2018 and 2020, suicide and accidental poisonings were the two <a href="https://www.aihw.gov.au/reports/life-expectancy-death/deaths-in-australia/contents/leading-causes-of-death" target="_blank" rel="noopener">leading causes of death among 25-44 year-olds</a> – both of which can occur without warning. For the partners left behind, their grief is compounded by another painful loss – the loss of financial stability.</p>
<p dir="ltr"><strong>‘It won’t happen to me’</strong></p>
<p dir="ltr">Too many women overestimate their financial resources and protections, while believing their partner will always be there to cover their back. Can you afford to pay the bills after the sudden loss of income – which may have been the bulk of your household earnings? Do you have the full picture of your, and your partner’s, assets, and debts? How will you juggle your job with the new-found constraints of being single, and potentially a single parent? If your partner was self-employed, is the business still profitable or even viable if they’re gone? Has its value suddenly diminished?</p>
<p dir="ltr">These are just several of many issues widows face, at an already stressful time.</p>
<p dir="ltr"><strong>Preventing the worst</strong></p>
<p dir="ltr">While we can’t control death, I think there are two equally important preventative actions women can – and must – take to avoid becoming cash-strapped widows. Firstly, ensure your partner looks after themselves. Men especially often ignore their own health, until it’s too late. Be a source of encouragement and support, and hopefully keep them earthside much longer, with a good diet, regular exercise, stress-relieving activities, and regular medical check-ups for physical and mental health.</p>
<p dir="ltr">However, healthy lifestyles don’t guarantee a long life. Which is why contingency plans are crucial. Protecting yourself and your/your partner’s dependents should they die includes having:</p>
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<p dir="ltr" role="presentation">Emergency cash fund</p>
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<p dir="ltr" role="presentation">Household savings and investment plan</p>
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<p dir="ltr" role="presentation">Life insurance</p>
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<p dir="ltr" role="presentation">Funeral cover</p>
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<p dir="ltr" role="presentation">Current will</p>
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<p dir="ltr" role="presentation">Nominated superannuation/trust beneficiaries (which are separate from a will)</p>
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<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Succession/exit plan for any business owned</p>
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<p dir="ltr" role="presentation">Self-employed people paying their worker’s compensation and superannuation</p>
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<p dir="ltr" role="presentation">Qualified tax and financial advice</p>
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<p dir="ltr" role="presentation">Good debt management</p>
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</ul>
<p dir="ltr"><strong>Coping with loss</strong></p>
<p>To every widow, let me first say I am so sorry for your loss. You may feel overwhelmed by your new reality. Money worries will only add to this. Some immediate options to ease this pressure and let you focus on processing your grief with loved ones include:</p>
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<p dir="ltr" role="presentation">Time off: Work may seem like a good distraction, but you risk making poor decisions under clouded judgement. Take bereavement/annual leave to keep money coming in. For the self- employed, have a business partner/senior employee cover for you.</p>
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<p dir="ltr" role="presentation">Notify your partner’s employer: To pay out remaining wages and entitlements.</p>
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<p dir="ltr" role="presentation">Life insurance, funeral cover: Check your partner’s policies, including through their superfund. Lodge a claim as soon as you can – it takes time to be processed and paid out.</p>
</li>
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<p dir="ltr" role="presentation">Get support: You may be eligible for <a href="https://www.servicesaustralia.gov.au/what-help-there-when-adult-dies?context=60101" target="_blank" rel="noopener">government support measures</a>, including deferred obligations and bereavement payments.</p>
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<p dir="ltr" role="presentation">If your partner died at work: Worker’s compensation or other payouts could be owed to you.</p>
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<p dir="ltr" role="presentation">Counselling: Free services include <a href="https://griefline.org.au/" target="_blank" rel="noopener">Griefline</a> or your/your partner’s Employee Assistance Program.</p>
</li>
</ul>
<p dir="ltr"><strong>Life as a single woman</strong></p>
<p>It’s now entirely up to you to manage money and save for retirement. I recommend getting good professional advice to work through:</p>
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<p dir="ltr" role="presentation">Transferring assets to be under your name</p>
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<p dir="ltr" role="presentation">Maintaining a roof over your head – which may mean downsizing to a more affordable home</p>
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<p dir="ltr" role="presentation">Adjusting to life on one income</p>
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<p dir="ltr" role="presentation">Maximising earnings; minimising tax</p>
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<p dir="ltr" role="presentation">Investing larger payouts – your late partner’s superannuation, insurances, compensation</p>
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<p dir="ltr" role="presentation">Business strategy – how and whether to sell or continue trading</p>
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<li dir="ltr" aria-level="1">
<p dir="ltr" role="presentation">Updating your will; providing for dependent children/elderly parents</p>
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<p dir="ltr" role="presentation">Meeting debt obligations</p>
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<p dir="ltr" role="presentation">Should you enter another relationship down the track, whether a binding financial<br />agreement is needed</p>
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</ul>
<p dir="ltr">The death of a partner is emotionally devastating. Yet it needn’t devastate you financially too. No matter your situation or life stage, I implore you: take an active role in managing your money. The death of a partner will necessitate it, but you’ll make a difficult situation that bit easier by having financial strategies already in place to fall back on.</p>
<p><strong>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au" target="_blank" rel="noopener">www.onyourowntwofeet.com.au</a> </strong></p>
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<p dir="ltr"><em>Image: Shutterstock</em></p>
