As a financial adviser, I’ve seen firsthand how challenging it can be for widows to navigate their financial landscape after losing a spouse. The grief of such a loss is overwhelming, and the added burden of managing unfamiliar financial decisions often compounds the stress. However, 2025 can be a year of healing and empowerment. By adopting the right strategies and taking actionable steps, widows can regain control over their finances and build a stable, secure future.
Here are five key goals to consider:
1. Create or update your will
One of the most loving acts you can take for your family is ensuring your estate plans are up to date. A will is more than just a legal document; it’s a love letter to your family. A thoughtful and clearly laid out estate plan will protect your legacy and make sure that your loved ones are taken care of. Even more, you can name the causes and charities that are most important to you to pay your wealth forward and help others for many years after you pass.
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The first step is to take stock of all your assets, such as cash and investment accounts, retirement assets, real estate, life insurance and more. Many individuals forget to include important sentimental belongings, which may or may not have value but could cause conflict if not addressed.
Once you have outlined all of your assets, be sure to choose a trustworthy executor to oversee your wishes. An executor is the guardian of your estate who ensures that any liabilities and taxes are paid, and all assets are distributed to those who you care about.
The good news is that you do not need to do this work alone. Enlist the help of an estate attorney to make the process smooth and ensure your plans are legally sound.
2. Review beneficiary designations
Beneficiary designations on some accounts, such as retirement accounts like 401(k)s and IRAs, annuities and life insurance policies, override your will. What this means is that whoever you name as a beneficiary on any of these accounts will receive your assets regardless of what your will says. This is because financial companies must honor the contract established through the beneficiary form, regardless of the will’s instructions.
Big no-no’s include listing a minor, ex-spouse or deceased person as a beneficiary. You will not want to leave assets directly to someone who might have poor financial habits, is incapacitated or is in a legal battle with creditors. Talk to an estate planning attorney about different types of trusts that could help your loved ones but still protect the funds.
Be sure to review all of your beneficiaries to ensure they reflect your current intentions, to avoid legal disputes or unintended allocations. Don’t forget to name contingent beneficiaries as a backup. If you do not have a contingent beneficiary listed and your primary beneficiary has passed away, the assets go to probate and are distributed by the court, causing legal fees, headaches and significant delays.
For complex scenarios, consulting a financial adviser can help you navigate these choices effectively.
3. Revisit your budget
Widows often face a significant drop in income. According to the Journal of the Economics of Ageing, a woman’s income drops by 22% in the first two years after losing a spouse. If the primary income source is their partner’s Social Security income or salary, this percentage can be even higher.
Understanding your cash flow is important, especially for widows whose expenses have most likely changed after the death of their spouse. We recommend crafting a sustainable budget using the 50/30/20 rule — 50% for needs, 30% for wants and 20% for savings or debt repayment — which can provide structure and clarity.
Track your spending through budgeting tools like GoodBudget or YNAB to maintain control of your spending and identify areas for adjustment. This approach ensures you’re meeting your current needs while also planning for the future.
4. Invest wisely
Adjusting your investment portfolio to align with your new goals and risk tolerance is essential. The financial landscape that you shared with your partner has changed significantly, and the investment portfolio that was right for the two of you, as a couple, most likely needs to be tailored to your specific financial needs and goals.
You will want to make sure to diversify your investments and possibly minimize risks or explore income-generating options like dividend stocks or bonds if you need to generate additional income.
If you’re unsure of your next steps, seek guidance from a fee-only, fiduciary financial planner who understands your unique situation. Staying informed and rebalancing your portfolio on an ongoing basis are key.
With attention, information and care you can ensure your investment portfolio supports both your immediate needs and your future goals, empowering you to move forward with confidence and financial security.
5. Seek professional guidance
Navigating finances alone can feel daunting. A trusted financial adviser can provide tailored advice, helping you simplify decisions and create a road map for financial security. Studies consistently show that working with a financial adviser can significantly improve financial outcomes for all investors, especially widows as many may not have significant investment knowledge or experience.
According to a study by Vanguard, individuals who work with a financial adviser can enjoy net portfolio returns of 3% higher each year, on average, compared to investors who go it alone.
Using best practices such as the appropriate asset allocation, tax-efficient investment strategies and portfolio rebalancing all add to this higher investment growth. In addition, your adviser will help you stay the course or sell when appropriate, helping you sidestep making the big mistake of selling during a market drop or buying in when assets’ values are inflated.
Final thoughts
The journey toward financial stability is deeply personal and different for everyone, based on their individual circumstances, goals and emotions. What is true for all widows is that moving forward financially on your own requires patience with yourself and grace, and is best done by breaking these larger financial actions into smaller steps.
Whether it is revisiting your estate planning, reviewing your budget or reassessing your investments, create a calendar to tackle one of these strategies each quarter in 2025. By taking small, intentional steps, widows can move forward with confidence and clarity. The opening months of a new year present an opportunity to rebuild, find empowerment and create a secure future.
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
