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Assumptions When the First Spouse Passes
Assumptions When the First Spouse Passes

This article describes changes that occur in the Planner when the first spouse passes

Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

A financial plan may be impacted in a variety of ways upon the loss of a spouse. See below for the items you may want to take into consideration and how they are handled by the NewRetirement Planner.

Income: Income streams from work, pensions or annuities for a spouse will end at the spouse's longevity date if there is no survivor benefit.

Savings: At the spouse's longevity date, accounts will become the assets of the surviving spouse and subject to the appropriate RMD tables for the surviving spouse.

RecurringExpenses: No changes are modeled by default at the longevity age of one spouse. Although each plan is different, you may wish to modify expenses at the spouse's longevity date. For example, the loss of a spouse may bring on a need for home maintenance or personal care otherwise provided by the spouse. Or, the loss of a spouse may entail a reduction in travel and entertainment expenses.

Medicare and long-term care expenses: Medicare and long-term care expenses will adjust automatically at the longevity date of the first spouse to pass.

Home and Real Estate: No changes are modeled by default at the longevity age of one spouse. You have the ability to model a variety of real estate changes in My Plan such as relocation to a smaller residence or retirement community after the loss of a spouse.

Social Security The Planner will automatically adjust for the survivor benefit at the longevity date of one spouse.

IRMAA: When one spouse passes the Planner will use the AGI for the survivor in calculating IRMAA.

Taxes: When one spouse passes the Planner will use the AGI for the survivor in calculating income taxes.

Life Insurance: You may wish to enter the death benefit of any relevant life insurance policies in My Plan > Income > Windfalls at the longevity date of the spouse with the first longevity date.

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