Advisers Boost Widowed Adults’ Financial Confidence, per Study

As some adults cope with the loss of a partner who helped make financial decisions, advisers are stepping in with needed guidance, according to newly released data from Ameriprise Financial Inc.’s study, “Flying Solo: Navigating Financial Autonomy,” first published in May.

Ameriprise’s January poll of 3,003 “financially solo” U.S. adults aged 25 through 75 included those who were single or never married (52%), divorced or separated (33%) or widowed (15%). The mostly mass-affluent respondents had an average of $700,000 in investable assets but only shared 37% confidence in how they saved for retirement.

Among widowed respondents, who had an average age of 65, 89% said they currently felt financially confident and 44% said they were most proud of not being a financial burden to loved ones.

However, when it came to aging, a large portion of respondents were not so confident. Eighty-five percent shared at least one financial worry about aging, with the most-cited worries including financially burdening loved ones (53%), affording long-term care (45%) and running out of savings (40%).

After their partners’ death, widowed respondents most often reported being surprised (37%) by “how difficult it was not having someone to talk with about money,” and 58% wanted someone with whom they could share financial decisions.

“After the loss of a spouse, people often find themselves making important financial decisions without the person they relied on most,” said Deana Healy, Ameriprise’s vice president of financial planning and advice, in a statement. “While many widowed adults are adapting to their new reality with resilience, they’re thinking carefully about how to prepare for future healthcare needs, protect their legacy and remain financially self-sufficient.”

Professional Advice Leading to Confidence

Nearly two-thirds of widowed respondents (62%) reported working with a financial adviser—higher than the share of all respondents (52%).

Seventy-four percent of widowed respondents working with advisers said that getting professional financial advice and having short- and long-term financial goals made them feel more secure about their financial future. In turn, respondents who were financially confident were more likely to work with financial professionals.

Widowed respondents had a sizable lack in estate planning, as 44% did not have a financial power of attorney, 43% did not have a formal will and 39% lacked healthcare directives. The more financially confident respondents, however, were more likely to have addressed estate planning.

“Whether you’re managing finances on your own or as part of a couple, staying engaged in financial decisions, planning ahead and seeking trusted guidance from an adviser can help people preserve their independence and navigate change with greater confidence,” Healy said in a statement.

Artemis Strategy Group conducted an online survey on behalf of Ameriprise from January 2 through 29.