The majority of individuals don’t want to think about death. Most people do not want the end to come, even though they are dying. Often people will forget vital information related to their death in an attempt to forget about “the end”, such as adequate financial planning for those left behind. To express love to those who are left behind, but, we need to prepare financially for when we are no longer alive. nobody plans for death but maybe people should is an excellent resource for this.
According to the report, “One in five people drop below the official poverty line after the death of their partner,” Economic Downturn Heightens Financial Fallout for Bereaved. The report went on to say that women appear to be affected more than men, while men may be affected. What, though, does this say? People have a 20% chance of becoming poor, not only after the death of a partner, but below the official poverty line, especially if you’re a woman.
A individual (such as a widow or widower) with no children at home under the age of 65 is in poverty, according to the US Census Bureau, if their income falls below $11,201! I’m not sure about you now, but if I just made $11,201 a year or less, I would eat plenty of top ramen! Based on the number of dependents and the age, the thresholds are different, but you get the impression that the official poverty line is very, for lack of a better term, bad!
So 1 in 5 widowed individuals make less than $11,201 a year after the death of their spouse (assuming they live alone under 65). What about if the widowed person had children? Then the official poverty line will mean that a mom will make less than $17,346 a year with two kids — that still sounds like lots of Top Ramen, missed meals, frightening apartments, and goodwill shopping. But that is what anyone who works full-time for $8.33 / hour would hope to earn in a year!