As Women Live Longer, They Should Also Plan For A Second Retirement
This week’s article introduces the topic of a “second retirement”. It refers to the period after the death of the first spouse when the survivor must tend to household, financial and health matters alone. Few couples look past the sunshine and rainbows that they envision for their early retirement period to the period when protecting independence and dignity are paramount. The article correctly points out that fewer still focus on the repercussions to the spouse who is left behind.
The costs of aging are routinely included in our financial projections. This allows us to understand that the most expensive period in your life may not be when you are golfing and travelling but rather might be the period when one spouse is in assisted living while the other is still living in the principal residence. We also emphasize the tax ramifications that deferring capital gains and RRIF withdrawals indefinitely will have on the surviving spouse who is left with large taxable income levels and no one with whom to income split. The best financial life strategies must consider both the rosy and difficult periods in life.
Read the full article on Forbes