The loss of a partner, whether expected or unexpected, brings feelings of grief, overwhelm, and uncertainty. On top of all these emotions comes the daunting task of handling the financial matters that follow after someone you love passes.
Now, we know that when you’re going through the motions after losing your spouse, the last thing on your mind is bills, accounts, and paperwork. But taking a little time to understand what needs to be done can help ease the burden and give you some sense of control during an overwhelming time.
This guide offers a simple, step-by-step approach to make managing the practical side of things a little easier. Think of it as a checklist to help you take things one step at a time, so nothing important slips through the cracks.
Immediate Next Steps
When you’re ready, taking care of funeral arrangements and letting the right people know are the first things you’ll need to handle.
Determine Funeral Costs (And How To Pay Them)
It’s probably not the first thing you think about after losing a spouse, but planning the funeral will likely be one of the first practical steps you face.
When arranging a funeral, you will need to think about where and how (burial or cremation) your loved one will be laid to rest, what kind of ceremony you would like, and whether there will be a reception/wake. It should be noted that all of these factors come into play when determining the funeral cost and how you wish to manage the associated expenses. Some of the different ways you can pay for a funeral are via:
- Superannuation death benefits
- Centrelink bereavement payments (check eligibility)
- Money from your spouse’s or your joint bank accounts
- Funeral-specific or life insurance
- Some funeral providers may provide payment plans
- Funeral assistance programs, which vary by state
Notify Relevant Entities
Once you have received the death certificate from the Australian Government Department of Births, Deaths and Marriages (your funeral director will typically apply for one), it’s essential you notify the relevant entities to update or cancel them, or ensure a transfer of accounts into your name.
- Banks and financial institutions
- Centrelink and Medicare
- Superannuation fund
- Insurance companies
- Utilities, service providers, and subscription services
- Australian Taxation Office (ATO) or Dept of Veterans’ Affairs (if applicable)
Review Current Financial Situation
Once the funeral has been held and everything has settled down, you might be ready to start thinking about the next steps. This often involves assessing your current financial situation, organising your accounts, and updating insurance policies. The thought of having to do this can feel daunting, but taking a structured approach can help you feel more in control.
Assess Immediate Income and Expenses
- Identify your current income sources: your salary, age pension, superannuation payouts, Centrelink bereavement payments, and savings.
- Make a list of regular outgoing expenses: mortgage/rent, utilities, groceries, medications, and bills.
- Keep track of upcoming bills and prioritise urgent payments.
Organise Financial Accounts
- Identify all bank accounts, both joint and individual and update if necessary.
- Take stock of all your and your spouse’s investments, personal assets, debts, and superannuation (check for a binding death benefit nomination).
- Gather all statements, policy documents, and account details to understand your overall financial situation.
- Consolidate accounts or note any recurring payments to simplify management.
- Keep a clear record of obligations, such as loans, mortgages, or credit cards, to avoid surprises later.
Update Insurance Policies
- Review and update any life insurance, health insurance, or other relevant coverage held by your spouse or yourself. If your spouse had coverage, determine what payouts you may receive or if there will be changes to premiums.
- Make note that some insurance policies in Australia have automatic adjustments upon the death of a spouse; check with providers.
Adjust Your Long-Term Financial Plan
Once you have reviewed your current financial situation, it’s time to start planning for your future, however daunting that may be, which is why we also remind you to seek support from family and friends during this time, and maybe even a professional financial planner, so you’re not facing these decisions alone and can make informed choices about your long-term financial future.
Create a New Budget
- Review all sources of income, including your own salary, superannuation payouts, Centrelink payments, and any other benefits.
- Reassess monthly expenses to reflect your changed lifestyle and priorities; some costs may decrease while others may increase (e.g., healthcare, insurance, housing, or aged care supports).
- Identify essential vs. non-essential spending.
- Consider setting aside an emergency fund if you don’t already have one.
- Track spending regularly to ensure your new budget is realistic and sustainable.
- Use budgeting tools such as MoneySmart budget planner by ASIC to make the process easier.
Make a Plan for Debt
- Take a closer look at debts, including credit cards, mortgages, or personal loans.
- Explore options for restructuring or consolidating debt to reduce monthly repayments or interest charges.
- Consider prioritising high-interest debts to minimise long-term costs.
- Speak with a financial advisor or bank if you need guidance on managing debt under your new circumstances.
Reassess Investments and Superannuation
- Check your superannuation: update beneficiaries, review tax implications and fees, and consider whether your investment strategy still meets your retirement plans.
- Review existing investments and assess whether they still align with your goals and risk tolerance.
Explore Future Financial Decisions
While we already addressed it briefly above, we decided to outline the importance of planning
and anticipating your healthcare, support, and housing needs as you age. And although estate planning sits outside day-to-day finances, using this time to update legal documents can make future decisions easier for you and less stressful for your loved ones.
Plan for Healthcare Costs
- Think about your likely healthcare needs as you age, including doctor visits, prescriptions, allied health, and potential long-term care.
- Understand what Medicare covers and review your current private health insurance policy, adjusting your cover as necessary to address your changing needs.
- Consider long-term support or aged-care facility costs and how they may impact your financial situation.
- Include these estimates in your long-term budget to avoid surprises.
Housing & Lifestyle Adjustments
- Determine your retirement goals, what you want it to look like, and where you want to live. Does your current situation still meet your needs?
- Consider if downsizing, moving closer to family, or altering your lifestyle may help accommodate your changing needs.
- Seniors may be eligible for a Super Downsizer Contribution, which can contribute to their superannuation.
- Make small changes over time – don’t do everything at once.
Revisit Estate Planning Documents
- Ensure your will accurately reflects your current intentions about who inherits your assets.
- Review your enduring power of attorney and enduring guardianship documents to ensure the people you have appointed are still suitable.
- Verify that your superannuation and insurance beneficiaries are up to date.
- If you have any trusts, such as family or testamentary trusts, check that the trustees, beneficiaries, and terms are still suitable.
- Make sure those you’ve appointed understand your wishes.
Seek Support
Everybody grieves in their own way, and it is so important that you understand this and are kind to yourself during the whole grieving journey. Don’t let anyone tell you how you should feel and please seek support if you need to. Remember, it’s not weak to speak.
Whether this is leaning on the shoulders of friends or family, or getting professional help through a psychologist to help you navigate your emotions, remember that asking for support is a sign of strength and can make the grieving process a little easier to manage.
Family and Community Support
We cannot say this strongly enough. Let the people who love you be there for you. They’re grieving too, and they want to support you just as much as you want to support them. Together, you can get through the hardest moments and slowly find your footing again.
There are also a number of community and national services that can offer support, whether you need someone to talk to, practical guidance, or simply a listening ear. Some of the key options include:
- Griefline: Free telephone and online grief support available 8am and 8pm 7 days a week. They also offer online forums, support groups, and resources.
- Lifeline: Free over-the-phone counselling and crisis support (available 24/7).
- Beyond Blue. Free over-the-phone counselling and online resources are available if you’re feeling depressed after the death of a loved one (available 24/7).
Professional Support
Sometimes, when you’re grieving, talking to somebody completely objective, with whom you don’t have personal ties, is precisely what you need. There are many psychologists and counsellors who specialise in grief counselling, and they can provide a safe space to work through your emotions, offer coping strategies, and help you navigate the ups and downs of your grieving journey.
If you’re worried about the cost, you may request a Mental Health Care Plan from your GP to reduce the cost of your sessions. Your GP may also be able to provide a recommendation for nearby mental health professionals; otherwise, we recommend using the Psychology Today directory to find a qualified psychologist or counsellor in your area.
How We Support You At The Village Retirement Group
Losing a spouse is incredibly hard, which is why at The Village, each of our communities offers a caring environment where residents can lean on one another, take part in social and well-being programs, and find gentle support as they navigate their grief.
Each village also has a partnership with an aged care provider, making it easier to access higher-level care if your needs change. At-home support packages are also available to help residents maintain their independence, well-being, and quality of life while receiving the practical support they need. Together, these services and the sense of community reassure those grieving that they’re not alone and that help is always close at hand.
Please note that the information provided in this article is general guidance and should not be taken in place of that given by a professional. We highly recommend seeking the help of an expert to best assess your individual situation and make decisions that suit your needs and circumstances.
