In previous articles on financial planning for women, we discussed the various life stages of a woman's life, along with an appropriate plan for each.

In 'Widows with or without children' we showed how those who may have recently lost a partner, can get back on their feet.

Now we move on to the next life stage: Old age, with or without a spouse.

The most unfortunate part of this life stage is that by the time one gets to it, it may be too late to prepare for it. More so, if the spouse suddenly passes away things can come to a grinding halt.

Before I begin the analysis of this life stage, I have a request. It's quite likely that women who belong to this life stage may not be reading this article. Hence if you know someone in this life stage, I would be glad if you could convey the message.

At this life stage, those who have family around you, should consider themselves lucky. These days with job mobility and career-oriented lifestyles, it is quite likely that the elderly live alone or that your children cannot spare enough time for you, no matter how much they wish otherwise.

As a woman, probably in your late 50s, 60s or more, you must ask yourself this question: 'Am I prepared if I were suddenly alone, say for instance, if my spouse passes away? Will I be financially secure in his absence?'

Now you need to shoulder more responsibility, right from paying the electricity bill to filing tax returns to managing social relations. You may have never done any of these your whole life, and it could leave you feeling very disorientated.

It's a good idea to prepare yourself while he is still around. Here are some things to do:

Financial security: Get to know what is where, how much, and who is managing it, ie advisor, broker, CA, planner, lawyer etc.

Is the Will in order for both of you?: Depending on the asset size and family dynamics, find out if the Will is registered. It's important that a Will is drawn up specifying exactly how the assets will get transferred in the contingent absence of any one spouse.

All information on receivables that are likely to come to you:

Life Insurance: What is the policy? What is the likely death benefit going to be? How do you file the claim? Is the agent accessible? These days banks sell insurance and if you really need help, be sure to know where and whom to get your claim from. When that money comes in who will help you manage it? You must have all the answers.

Pension: This is with regards to spouse pension payments. Is the money going to come into the bank account directly, or do you need to file a claim? What is the procedure to transfer the pension payments in your name?

Other investments: Are all investments likely to get transferred to your name? There can be numerous procedural bottlenecks. For example, dematerialisation of shares, joint holding with children and not you etc. There are numerous instances where you can see your money but cannot touch it. At times like this, you wish you had kept all your paperwork in order.

All information on liabilities:

General management of bills/utilities: This is your responsibility now. How will the utility bills get paid? It is a small thing but can you live without a mobile or telephone or electricity?

Do you owe money?: Are there any loans or monies owed to anyone that need to be paid off?

Healthcare: Are you covered by the company your spouse was working in? Is there adequate funds for this? If the medical Insurance is not available what are your options?

Another most critical area, that is never even thought of is POA or Power of Attorney. As you age and if your health declines, you may not be able to write our own signature properly. I don't need to tell you what happens if your signature does not match. But imagine the plight, only you can sign but your current signature does not match your earlier one. In this case, choose someone you trust, and give them the general POA or specific POA.

The list goes on. But if you have the above in order, it will be a whole lot easier for you to manage.

The author, Kartik Jhaveri, an expert at Financial Planning, is a Certified Financial Planner and a Certified International Wealth Manager.

Disclaimer:
The contents of the above articles are the intellectual property and copyright of the author, Kartik Jhaveri. No part may be used or reproduced in any form or manner. If you choose to act upon the information contained in the above article it is at your own risk. This article is purely educative and you are strongly advised to consult an expert prior to taking any significant decision.

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