Most couples build their retirement plan assuming both spouses will live a long life together.
But one of the biggest blind spots in retirement planning is asking:
What happens if one spouse passes away much earlier than expected?
In this video, I walk through a real retirement planning case study and show how the loss of one spouse can dramatically change a retirement plan that originally looked very solid.
On the surface, this couple appeared to be in great shape. Social Security. Pension income. Strong savings. A high probability of success.
But when we modeled what would happen if the husband passed away early, the plan changed significantly.
Why?
Because retirement income often changes more than people realize after the first spouse passes away. One Social Security check is lost. Pension income may be reduced. At the same time, many household expenses do not fall nearly as much as people expect.
That combination can create pressure on the surviving spouse for decades.
I also walk through a strategy we used to help offset that risk using a pension election decision combined with a relatively inexpensive term life insurance policy.
The goal of this video is not to create fear. It is to highlight a planning issue that many couples simply have not thought through.
Because sometimes a retirement plan can look great on paper as long as both spouses are alive. The real question is whether the surviving spouse would still be in good shape if life does not go according to plan.
If you are married and approaching retirement, this is an important conversation to have before decisions become permanent.
News You Can Use
Get actionable financial advice delivered to your inbox a few times a month.