Older women may inherit most of $54 trillion
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For many married women, one of the biggest financial transitions of their lives will come at a very unwelcome time: after the death of their spouse.
Women live longer on average than men; This is a life expectancy gap that means many women live longer than their husbands. The average life expectancy at birth for men in the USA is 76.5 years as of 2024. Centers for Disease Control and Prevention. For women, this average is 81.4 years.
Once you reach age 65, the difference narrows. At this point, according to CDC data, men’s life expectancy increases by another 18.4 years, or up to 83.4 years of age. For women, this average is 20.8 years or 85.8 years.
This difference in life expectancy means that women are expected to receive most of the wealth transferred from spouse to spouse during the so-called major wealth transfer. This is a period between 2024 and 2048; An estimated $124 trillion will be transferred largely by baby boomers (those born between 1946 and 1964) and older generations. Research by Cerulli Associates.
Of that amount, an estimated $54 trillion will go to widows, 95% of which will go to women, according to Cerulli Associates. Research shows that $40 trillion of that will go to baby boomers or older widows.
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When it comes to women in these older generations, financial advisors say it’s common for couples to embrace the traditional role of the husband managing investments and long-term planning.
“In many senior households, husbands have historically made most of the financial decisions,” said certified financial planner Ryan Marshall, partner and financial advisor at ELA Financial Group in Wyckoff, New Jersey.
“This is more common [older women] “Marshall wasn’t a part of it,” he said. “They handled everything else in the family.”
But Marshall said this lack of information “can leave the surviving spouse feeling overwhelmed at an already difficult time.”
In other words, before you get to that point, it’s good to at least know where assets are held, how income is generated, and who to ask questions.
“The goal is not to make everyone a financial expert, but to ensure that the surviving spouse has the familiarity and confidence to manage this transition,” he said.
There is no need to rush into decisions
While many married couples have an inheritance plan in place when their spouse dies, some do not.
“If you haven’t planned for this in advance, you’re kind of going to have to start all over again,” said Crystal Cox, CFP, senior vice president at Wealthspire Advisors in Madison, Wisconsin.
“For example, what is your new budget,” Cox said. “Or your portfolio before [was based] on a couple’s risk tolerance. “Now you have to look at the situation as a single person.”
If you didn’t plan this in advance, you’ll have to start all over again.
Crystal Cox
senior vice president of Wealthspire Advisors
But Cox said priorities immediately following a spouse’s death should be limited to basic needs, such as ensuring access to cash, notifying agencies, paying ongoing bills and claiming benefits (from life insurance, for example).
“As the initial grief begins to stabilize — and this timeline is different for everyone — widows can begin to reexamine the broader financial picture,” Cox said.
While the details of what any widow faces financially depend on the specifics of their situation, there are a few things most widows will face, whether they have significant assets or not.
Cash flow may decrease
Your cash flow can be affected almost immediately. Assuming both spouses receive In Social Security, the surviving spouse generally keeps the larger of the two benefits and the smaller goes out. Depending on the amount of the smaller one, this could result in a significant decrease in revenue.
“This is a huge impact that a lot of people don’t think about,” Cox said.
Average survivor benefit for Social Security $1,622.32 per monthAccording to January data of the Social Security Institution.
Cox also said that if the deceased spouse had a pension, the income from that may vary depending on the characteristics of the retirement plan. If it includes survivor benefits, the amount may be lower than what your spouse receives. Or it may require a lump sum payment.
Advisers say surviving spouses generally spend less than they did as a couple, but that spending doesn’t drop by half when one spouse dies.
“In retirement projections, we try to do a 60% to 70% income replacement when one spouse passes away,” Marshall said. “There’s still a lot of those costs left.”
Be aware of the impact of a tax filing status change
Widows must be prepared The tax situation will change. You can still file a joint tax return for the year your spouse dies, but after that you’ll generally be taxed as a single filer (unless you have a dependent child).
Single filers often face less favorable tax brackets, a smaller standard deduction, and lower income thresholds for some other tax deductions.
“If your income doesn’t change that much, you may find yourself in a higher tax bracket,” Cox said.
The standard deduction for married couples filing jointly for 2026 is $32,200. For a single filing, that amount is $16,100.
Of course, that lower amount might mean it’s more beneficial to itemize your deductions, Cox said. This means that allowable deductions such as mortgage interest, state and local taxes, charitable donations, and some medical expenses may total more than the standard deduction.
