September 2026 – Most couples spend years planning for retirement together.
They decide when to retire, when to claim Social Security, how much they expect to spend, where they want to live, and what they hope to enjoy during the years ahead.
But there is another question that deserves thoughtful consideration:
What happens to the retirement plan when one spouse passes away?
It is not an easy subject to discuss, but planning ahead can make an already difficult time less financially confusing. A retirement strategy designed for two people may look very different when one spouse is managing the household alone.
Understanding those potential changes before they happen can help both spouses feel more prepared.
Household Income May Change
One of the first areas to consider is retirement income.
A household may receive income from several sources, including Social Security, pensions, retirement accounts, investments, and other assets.
When one spouse passes away, some of those income sources may change or stop altogether.
This is why couples may benefit from understanding not only how much income they receive today, but also which income sources would continue if either spouse were no longer there.
Social Security Benefits Can Change
Social Security is an especially important area for married couples to understand.
When a spouse passes away, an eligible surviving spouse may qualify for Social Security survivor benefits based on the deceased spouse’s work record. The amount available depends on several factors, including the deceased spouse’s benefit and the survivor’s age when benefits begin.¹
This does not necessarily mean the surviving spouse simply continues receiving both Social Security payments.
Understanding how Social Security income could change can therefore be an important part of planning for the surviving spouse.
Retirement Accounts May Require Decisions
Retirement accounts can also require attention after the loss of a spouse.
If a surviving spouse inherits an IRA, special rules may provide options that are not available to other beneficiaries. Depending on the circumstances, a surviving spouse may be able to treat an inherited IRA as their own, roll eligible assets into their own IRA, or remain a beneficiary of the inherited account.²
The appropriate approach depends on the individual’s circumstances, including age, income needs, tax considerations, and Required Minimum Distribution rules.
Because these decisions can have long term consequences, it may be helpful to review the available options before making changes to inherited retirement accounts.
Taxes May Look Different for the Surviving Spouse
Taxes are another area that can change.
For federal income tax purposes, a surviving spouse who does not remarry before the end of the year may generally still be able to file a joint return for the year their spouse passes away. Filing status can change in later years depending on the survivor’s circumstances.³
Changes in filing status, household income, retirement account withdrawals, and other factors may affect the survivor’s overall tax picture.
This is one reason tax planning should remain part of the conversation even after retirement begins.
Expenses May Not Fall as Much as Expected
It can be tempting to assume that a household with one person will simply have significantly lower expenses.
Some expenses may decrease, but many major costs can remain.
The surviving spouse may still have:
- Property taxes
- Home maintenance
- Utilities
- Insurance premiums
- Transportation costs
- Healthcare expenses
- Everyday household expenses
That means losing one source of income does not necessarily result in an equal reduction in expenses.
Planning for this possibility can provide a more realistic picture of what the surviving spouse may need.
Both Spouses Should Understand the Financial Plan
In addition to financial documents, it can be helpful to maintain a list of important contacts.
This may include:
- Financial professionals
- Insurance companies
- Attorneys
- Tax professionals
- Banks and financial institutions
Having phone numbers, account contacts, and basic information together can save valuable time when questions arise.
Beneficiary Designations Matter Too
Organization does not mean leaving sensitive financial information out in the open.
Many retirees choose to store documents in a secure home safe, a safe deposit box, or an encrypted digital storage solution.
Whatever method you choose, consider making sure a trusted individual knows how to access these documents if they are ever needed.
Planning for One Can Strengthen the Plan for Two
Organizing your paperwork is not something you do once and forget.
Major life events such as retirement, marriage, divorce, the birth of grandchildren, or changes in your financial situation may be good opportunities to review your documents.
Even if nothing significant has changed, an annual review may help ensure your records remain accurate and complete.
A Retirement Plan Should Consider Both Spouses
Organizing your financial documents may not be the most exciting part of retirement planning, but it can be one of the most valuable.
Having everything in one place may provide greater confidence for you today while making life easier for those who may need to help you in the future.
At Financial Services of America, we believe comprehensive retirement planning extends beyond investments. It also includes helping clients stay organized, prepared, and ready for whatever the future may bring.
Next Steps
If it has been several years since you reviewed your financial documents, now may be an excellent time to begin.
Taking a few hours to organize important paperwork today may help save your family unnecessary stress tomorrow.
If you would like to review how your retirement plan, estate planning, and financial organization work together, the team at Financial Services of America is here to help.
Sources
¹ Social Security Administration. Survivor Benefits. Social Security Administration, www.ssa.gov/survivor. Accessed 29 Sept. 2026. Social Security Administration
² Internal Revenue Service. Publication 590 B, Distributions from Individual Retirement Arrangements (IRAs). Internal Revenue Service, www.irs.gov/publications/p590b. Accessed 29 Sept. 2026. IRS
³ Internal Revenue Service. Publication 501, Dependents, Standard Deduction, and Filing Information. Internal Revenue Service, www.irs.gov/publications/p501. Accessed 29 Sept. 2026.