Empowering women: Rebuilding finances after bereavement

Losing a partner is a life-changing experience that brings both emotional and financial challenges. Often women find themselves unsure of where to turn for financial advice, especially when they have traditionally managed day-to-day budgets while their partners handled larger financial decisions. Here are some practical tips to help women take control of their finances after bereavement.

1. Assess your financial situation

The first step towards financial independence after losing a spouse is to assess your current financial situation. Gather all important documents, including bank statements, investment accounts, insurance policies, and any outstanding debts. Understanding your financial position will help you make informed decisions moving forward. According to our Women and Wealth report, 54% of women experienced a loss of dual income, and 40% faced increased living expenses after losing their partner.

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2. Create a budget

Creating a budget is key for managing your finances effectively. Start by listing all your sources of income and expenses. This will help you identify areas where you may be able to cut costs and allocate funds towards essential needs. A well-planned budget can provide a sense of control and stability during a tumultuous time. Half of the women we surveyed found it challenging to manage household expenses alone after their bereavement.

3. Seek professional financial advice

While family and friends can offer valuable support, we believe that professional financial advice is essential for long-term financial planning. Look for a financial adviser who understands your unique situation and can provide personalised guidance. Some women told us that they find it helpful to work with advisers who communicate clearly and avoid technical jargon, making financial planning more accessible. However, only 19% of women used financial advisers during their bereavement, highlighting a gap in personalised support.

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4. Re-evaluate financial goals

Losing a partner often necessitates re-evaluating your financial goals. Consider your short-term and long-term objectives, such as paying off debt, saving for retirement, or investing in education. Adjusting your financial goals to align with your new circumstances could help you stay focused and motivated. Our report indicates that 35% of women needed to re-evaluate their financial goals after losing their partner.

5. Build an emergency fund

An emergency fund is a financial safety net that can help provide peace of mind during uncertain times. Aim to save three to six months' worth of living expenses in a separate, easily accessible account. This fund could help you cover unexpected costs and avoid financial stress.

6. Join support groups

Connecting with others who have experienced similar losses can provide emotional and practical support. Bereavement support groups often offer resources and advice on managing finances after losing a partner and empowering yourself with financial knowledge is often one of the best ways to take control of your finances. Sharing experiences and learning from others can be incredibly beneficial.

7. Remain positive and patient

Rebuilding your finances after bereavement is a gradual process. It's important to stay positive and patient as you navigate this journey. Celebrate small victories and remember that it's okay to seek help when needed.

Losing a partner is a deeply personal and challenging experience, but taking proactive steps could help you regain control of your financial future. By assessing your financial situation, creating a budget and seeking professional advice, you could build a solid foundation for financial independence.

Remember, you are not alone – support is available, and with time and effort, you can achieve financial stability and peace of mind.