Women age 65 and above are more than twice as likely as men to be unmarried - widowed, divorced, separated, or never married—and live alone. Since women live an average of 8 years longer than men, and they characteristically have significantly less financial assets, this creates many hardships at a time when life should be easier.
A widow who has not exposed herself to financial issues and who must suddenly assume responsibility for her household's finances will be understandably overwhelmed. On the other hand, a widow who is familiar with her assets and liabilities will make a more comfortable transition. Women should know the location of pertinent financial paperwork, including insurance policies, real estate deeds, mortgages, stock certificates, bonds, and brokerage account and annuity statements. Women should also take the steps necessary to understand the documents.
It is also important for a woman to establish her own finances to the extent possible. The earlier a woman starts putting money away for her retirement years, the better chance she will have of living comfortably at that time. Whenever available, women should take full advantage of any company sponsored retirement plans, and if this is not possible, IRAs and other options must be considered and implemented. The goal is to start this planning as early in life as possible, but even older women can make contributions that will pay off when income is needed later in life. Further, a woman should ensure that she establishes credit in her own name so that she will be able to obtain any needed credit in her own name.
Women are often at a disadvantage with respect to financial security throughout their lifetimes. If they balk at making financial decisions, hard times will likely befall them if they must face life alone. Without proper planning in place, the death of a spouse can financially devastate a woman. Women must understand their assets and liabilities and have a strategy in place that will maintain their style of living if they are widowed. Planning can make the difference between the loss of a husband being emotionally devastating, or both emotionally and financially devastating.
By: Gina M. Barry, Esq.
You may have already drafted a Last Will and created an estate plan that transfers your worldly possessions. Your estate plan should not end there. What steps have you taken to ensure that you also pass on your values, ideas and beliefs? What wisdom and life lessons do you want to share with those you care about? Do you want to be remembered for your values rather than for the possessions you have left behind? If so, you may want to consider drafting an ethical will. As the name suggests, ethical wills are the spiritual counterparts to “traditional” Wills that distribute wealth. Ethical wills pass on intangible assets such as blessings, life lessons, dreams and hopes as opposed to tangible possessions. While ethical wills are not binding legal documents, they can be an invaluable gift to friends, family members and loved ones.
In 2005, a government-financed study found that more than 1 million children in our nation take care of sick or disabled parents or relatives. The AARP says that about 65 million people give care each year. These caregivers can be friends, family members, spouses and neighbors. In some instances more than one relative helps out in some families, but most caregivers go it alone.