Retiree Concerned Because Partner Knows Nothing About Money: Steps to Ensure Their Financial Security

It’s a situation many retirees face: one partner handles all the finances, while the other remains largely uninvolved. This dynamic can work well during the partnership, but it can create significant anxiety for the spouse managing the money.

One retiree I recently spoke with shared this exact concern. He had been the financial decision-maker for decades, while his spouse had little to no involvement. Now in retirement, he worried about what would happen if he were no longer around to manage their finances. His biggest fear? Leaving his spouse financially vulnerable and unequipped to navigate their financial future.

Adding to his apprehension, he was sceptical about financial planners. Stories of pushy advisors and sales-driven tactics made him wary of trusting anyone with their money. Yet, he recognized that his spouse would need a trustworthy, unbiased guide. If you share these concerns, here’s how to address them and secure peace of mind for both you and your partner.

1. Build a Comprehensive Estate Plan

The cornerstone of financial security for a surviving spouse is a robust and clear estate plan. Start by working with a trusted estate planning attorney and ensure all necessary documents are in place:

• A Will: Ensure your assets are distributed according to your wishes and that your spouse is adequately provided for.

• A Living Trust: This simplifies asset transfer, avoiding the delays and costs associated with probate.

• Durable Power of Attorney: Assign a trusted person to manage financial decisions on your behalf if you become incapacitated.

• Healthcare Directives: Include provisions for medical decision-making to ease stress during difficult times.

• Beneficiary Designations: Regularly review and update beneficiaries on life insurance policies, retirement accounts, and investments.

Sit down with your spouse to explain the estate plan in plain terms. Make sure they understand how these documents work and where to find them if needed.

2. Simplify and Consolidate Your Finances

If your financial affairs are complex, it can overwhelm your spouse in your absence. Simplify where possible:

• Consolidate Accounts: Reduce the number of bank and investment accounts, making them easier to manage.

• Automate Payments: Ensure recurring bills are automated so they don’t fall behind on essential payments.

• Document Everything: Create a financial inventory that includes account details, passwords, contact information for advisors, and instructions for accessing funds.

By reducing complexity, you’ll make it easier for your spouse to manage finances, even if they have minimal experience.

3. Educate and Empower Your Partner

While you can’t expect your spouse to become a financial expert, basic financial literacy is essential. Take time to:

• Explain the Basics: Walk them through paying bills, accessing accounts, and monitoring spending.

• Introduce Trusted Professionals: Arrange meetings with your accountant, attorney, and financial planner so they know who to contact for guidance.

• Provide Resources: Consider financial literacy books or courses tailored to beginners.

The goal isn’t to turn your partner into a financial manager but to give them the confidence and knowledge to handle basic tasks or reach out for help when necessary.

4. Overcome Scepticism About Financial Planners

If you’re sceptical about financial planners, you’re not alone. Many retirees worry about advisors pushing products or locking clients into long-term contracts. But not all planners operate this way.

Fee-for-service financial planners offer a refreshing alternative. These planners charge for their time and advice, much like a lawyer or consultant. There’s no pressure to buy financial products or commit to ongoing relationships.

At Family Wealth Custodians, for instance, we operate on a fee-for-service model. Our focus is on providing honest, tailored advice, ensuring clients walk away with clarity and confidence—not a sales pitch. This approach can give you peace of mind, knowing your spouse has a reliable advisor to guide them without hidden agendas.

5. Prepare for the Transition

It’s also important to think practically about how to help your spouse transition into managing their finances. Consider these steps:

• Set Up Regular Check-Ins: Have routine conversations about finances to slowly build your partner’s comfort level.

• Assign a Trusted Backup: Identify a family member, close friend, or professional who can step in to assist if needed.

• Build a Support Network: Introduce your spouse to your professional advisors and trusted contacts now, so they feel supported in the future.

These small but meaningful actions will help create a smoother transition and ensure your spouse doesn’t feel alone when navigating financial decisions.

6. Focus on Peace of Mind

The goal of these preparations is simple: to provide peace of mind for both you and your spouse. Knowing there’s a plan in place ensures that your partner won’t face unnecessary stress or confusion during an already challenging time.

While it’s natural to feel concerned, taking proactive steps today can address many of your worries. An unbiased, transparent financial advisor, coupled with a strong estate plan and simplified finances, can be the foundation of a secure future for your spouse.

If you’re in this situation, remember that you don’t have to face these challenges alone. By taking the right steps and seeking the right advice, you can protect your partner and ensure they are well-supported in the years to come.