A report said the impact was especially felt by couples who both left the labor force and those age 72 and above. Image: Kellis/Shutterstock.com
The death of a spouse often has negative financial implications for the survivor afterward, ranging from erosion of savings to declines in credit scores, says a posting by the Center for Retirement Research.
“Anytime a spouse or partner dies, the survivor’s finances destabilize. The Social Security income coming into married households declines if the number of checks is reduced from two to one,” it said.
It cited data from a report by researchers from Ohio State University that average credit scores decline by 10 points, due to a “rise in delinquencies on debt payments . . . Other research has shown that the newly widowed deplete about 10 percent of their savings within two years to pay living expenses.”
“COVID only amplified these issues because of the high death rate and the sudden nature of so many deaths, which left many more financial problems unresolved, wills unwritten, and one solution – going back to work – less viable for the spouse or partner,” it said.
It said the impact was especially felt by couples who both left the labor force and those age 72 and above, who had the highest death rate due to COVID. That was in contrast to the general trend in which credit scores rose overall due to financial relief measures enacted in response to the pandemic, it said.
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