I spoke recently with several widows and a widower about their coping mechanisms in retirement. And, thankfully, these seniors have been coping quite well, having ensured that their financial plans are in order.

Their experiences, however, differ. One retiree shared that she is quite comfortable as she receives a widow’s pension in addition to her personal pension. Both pensions provide significant income for retirement, she said. Her children are grown and living on their own, and she said that there is no need to rush into a relationship having made the adjustment of being single after being married for several years.

This retiree noted that if she gets married again she would lose the widow’s pension, and said she is enjoying her retirement years, doing the things she loves, and building a legacy for her children and grandchildren.

Another retiree, who lost her husband a year ago, has decided to become an entrepreneur. With a daughter in university, she is getting accustomed to widowhood, as she plans to build on the legacy her husband left behind. She ensures that her emergency fund is intact and also maintains long-term investments in the stock market. The conversation I had with the client who is a widower was also very enlightening. He has been widowed for several years now and is quite happy. His pension provides adequate income for retirement and he continues to save and invest for the future. With a diversification strategy in place, he is prepared for any emergency that may occur. He does regular reviews of his investment portfolio. Being prudent in retirement is important for him more than ever as he doesn’t want to rely on his children for financial support.

The three retirees mentioned above have one thing in common. They have a financial plan. A financial plan is important for every stage of life. Financial planning is a systematic approach to managing your money. It captures your financial goals, and expenses, such as mortgages, insurance, and taxes. Estate planning, retirement needs, budget, your current financial situation, and risk tolerance are key elements of a financial plan. A professional and experienced financial advisor can assist in putting an effective financial plan in place.

The sudden death of a lifelong partner can be traumatic emotionally and financially for the surviving spouse. Death generally can take a toll on the partner who is left behind to cope with additional bills and reduced income, especially if there was no life insurance or financial plan in place to cope with the necessities of life.

Widowhood has a negative impact on mortality. Research shows that men’s mortality is higher than that of women after the death of a partner. The mortality risk is also higher for people who are widowed than for those who are married.

So, when planning for retirement, it’s important to examine the impact of mortality risk on widowhood as this risk factor results in lifestyle modifications. A health and retirement study done recently showed that employees who become widowed are likely to retire earlier than previously planned. It is, therefore, important to have social interventions by employers and health-care professionals in encouraging widowed employees to remain in the workforce. Be mindful that leaving the workforce too early can have serious financial implications during retirement. Employees should be encouraged to save and invest and review their insurance and health needs prior to retirement.

I cannot emphasise too much the need for an emergency fund. Pre-retirees and retirees who become widowed are particularly vulnerable as unexpected expenses can be overwhelming for the surviving spouse. An emergency fund can be the umbrella needed on a rainy day to cover unforeseen expenses. Having three to six months of living expenses may not be enough, as one expense can wipe away the funds at short notice. It’s best to be prepared. You may need to start small to build your emergency fund.

For a recently widowed retiree, a year’s living expenses in an emergency fund may just be adequate to cover urgent family expenses. Resorting to borrowing in order to maintain the household, especially if there are children still in school or medical bills to cover, can become problematic. I encourage everyone to be investors and minimise borrowing as much as possible. Your credit card is not an emergency fund. Be reminded that it’s a liability with high interest rates. A better alternative is to borrow against your emergency funds in times of crisis. Plan ahead. Widowhood can be a lonely and unhealthy experience for the unprepared.

Grace G McLean is Financial Advisor at BPM Financial Limited. Contact her gmclean@bpmfinancial. and visit the website: www.bpmfinancial.com. She is also a podcaster for Living Above Self. E-mail her at livingaboveself@gmail.com