Older women could inherit most of $54 trillion

For many married women, one of the biggest financial changes in their lives comes at the least welcome time: after the death of a spouse.

Women live longer than men on average. This longevity difference means that many wives outlive their husbands. According to the Centers for Disease Control and Prevention, the average life expectancy for a U.S. male at birth is 76.5 years in 2024. For women, the average age is 81.4 years.

The gap narrows once you reach age 65, according to CDC data. At that point, life expectancy for men will increase by another 18.4 years to 83.4 years. For women, that average is 20.8 years, or 85.8 years.

This difference in longevity means that women are expected to receive most of the wealth passed from spouse to spouse in so-called mega-wealth transfers. This means an estimated $124 trillion will be passed on between 2024 and 2048, primarily to baby boomers (born between 1946 and 1964) and older generations, according to a study by Cerulli Associates.

According to Cerulli Associates, an estimated $54 trillion of this goes to widowed spouses, and 95% of that goes to women. And research shows that $40 trillion of that goes to widowed women of the baby boomer generation and older.

When it comes to these older generations of women, financial advisors say it’s common for couples to embrace the traditional role of the husband managing investments and long-term planning.

“In many older households, the husband has historically made most of the financial decisions,” says Ryan Marshall, a certified financial planner and partner and financial advisor at ELA Financial Group in Wyckoff, New Jersey.

“It’s more common for (older women) not to participate,” Marshall said. “They take care of everything else in the family.”

But that lack of knowledge “can leave the surviving spouse feeling overwhelmed during an already difficult time,” Marshall said.

In other words, before you get to that point, it’s worth at least knowing where your assets are stored, how your income is generated, and who to call if you have questions.

“The goal is not to make everyone a financial expert, but to ensure that the surviving spouse has the knowledge and confidence to successfully navigate the transition,” he said.

While many couples have an estate plan in place in case their spouse dies, others do not.

“If you don’t plan ahead, it’s like having to start all over again,” said Crystal Cox, CFP, senior vice president at Wealthspire Advisors in Madison, Wisconsin.

“For example, what is the new budget?” Cox said. “Or, previously, the portfolio was based on the couple’s risk tolerance. Now they have to look at it as a single person.”

But Cox said immediate priorities after a spouse’s death should be limited to necessities, such as ensuring access to cash, notifying institutions, continuing to pay bills, and claiming benefits (such as from life insurance).

“Once the initial grief begins to stabilize, the timeline will vary for everyone, but widows can begin to reconsider their broader financial situation,” Cox said.

The financial challenges that widows face will vary depending on the specifics of their situation, but there are a few things that most widows face, whether they have significant assets or not.

Cash flow can be affected almost immediately. Assuming both spouses received Social Security, the surviving spouse typically keeps the larger of the two benefits and the smaller one disappears. Depending on the amount, your income could be significantly reduced.

“This is a huge impact that many people don’t think about,” Cox said.

The average Social Security survivor benefit is $1,622.32 per month, according to January data from the Social Security Administration.

Additionally, if the deceased spouse received a pension, the income from the pension could change depending on the details of the pension plan, Cox said. If survivor benefits are included, the amount may be lower than what your spouse would have received. Alternatively, a lump sum payment may be made.

Advisers generally say the surviving spouse’s expenses will be lower than they were when they were married, but they won’t be cut in half if one spouse dies.

“In our retirement projections, we strive to replace 60% to 70% of your spouse’s income if you pass away,” Marshall said. “There are still a lot of expenses left.”

Widowed spouses need to prepare for changes in their tax situations. You can still file a joint tax return in the year your spouse dies, but from then on you will generally be taxed as a single filer (unless you have dependent children).

Single filers generally have less of a tax advantage, with a lower standard deduction and lower income thresholds for certain other tax breaks.

“If your income doesn’t change that much, you may qualify for a higher tax rate,” Cox said.

In 2026, the standard deduction for married couples filing jointly is $32,200. For a single filer, that’s $16,100.

Of course, the lower amount could mean it’s more beneficial to itemize your deductions, Cox says. This means that the total amount of allowable deductions, such as mortgage interest, state and local taxes, charitable contributions, and certain medical expenses, can exceed the standard deduction.