New York Families May Face a Big Income Drop After Losing a Spouse

Losing a spouse can change almost every part of your life. It can also bring a major financial change for New York State households. A new study from Western & Southern Financial Group looked at U.S. Census Bureau data from more than 848,000 households led by someone age 50 or older. It found that surviving spouses often have far less income than married couples.

Income Can Change Quickly

Across the country, households led by a surviving spouse earn 63% less than married couple households. They found surviving spouses had a median household income of $40,800 a year, compared with $111,000 for married couples.

Women Face a Larger Gap

The study found widows earn less than widowers. The median annual income for widows was $38,900, while widowers had a median income of $48,600. There can be many reasons for the difference. Some women may have spent years caring for children or family members instead of working full time.

Social Security Benefits Can Also Fall

Social Security is an important source of income for many older adults in New York State. But the study found that benefits can drop by 40 percent for a surviving spouse compared with a married couple. A surviving spouse may be able to get a benefit based on their own work record or their late spouse’s record. Still, they do not keep both full benefits.

Planning Can Make a Difference

This is a reminder that retirement planning is not only about saving for a couple’s future. It's also about making sure one person can manage financially after the other dies. You may want to look at retirement accounts, insurance policies, Social Security options, and monthly expenses before a crisis happens.