ILLNESS AND DEATH OF A SPOUSE IS DIFFICULT

Old age is divided into three periods by gerontologists: "young old" from 65 to 75; "old" from 75 to 85; and "old old" after age 85. The "young old" generally don’t have many of the problems associated with the "old" and "old old" such as chronic illness, frailty, and loss of mental capacity. Females who reach age 65 are expected to live another 19 years, and males age 65 are expected to live another 15 years. Those who live past age 75 will generally find that their housing does not meet their needs. After age 85, most are concerned about their ability to live alone, and those who have special medical needs must decide whether their needs can best be met in their home, an assisted living facility, or a nursing home.

The death of a spouse after a long marriage can be devastating, emotionally and economically. Today, of those age 85 or older, nearly 70 percent are widows or widowers. A spouse’s death generally means reduced income for the survivor. For example, Social Security stops on the death of a recipient, meaning that a surviving spouse who was receiving an amount equal to 50 percent of the deceased spouse's Social Security income will receive 100 percent of what the deceased spouse was receiving, a drop in income.

Those with two-life annuities will receive a continuing constant amount until the death of the second life, while those with pension survivor rights will generally receive less than the deceased plan participant.

Dealing with the expenses of the final illness can be significant as, even with Medicare, the spouse will be required to pay at least some out-of-pocket expenses and the cost of the funeral. And should the deceased spouse have suffered from a chronic or long-term illness, prior to death, it is a safe bet that this will result in a serious depletion of the couple’s financial resources of the couple. If the couple relied on Medicaid to help pay the long-term expenses of the deceased spouse, most of the couple’s assets would have been used to pay the long-term care and medical costs involved.

As a result, surviving spouses often find they have less assets and income for their support than they had planned for, meaning that they may have to reevaluate their housing and other economic needs. In these situations, children often dictate where the older person lives and the type of housing – the vast majority of elderly people live within 50 miles of their children.

People should begin to plan for later-life housing needs while in their fifties. Considerations should include whether you want to relocate again and whether the housing you select now will be appropriate for later years. What may be appropriate at 65 may not be at 80. And those who move in their 50’s are generally at the peak of their earnings – far different from the reduced financial circumstances couples and surviving spouses often face.

© 1997, Flying Solo®