When one spouse handles all the household finances, the other can be left vulnerable. Here’s why and how to change that now

Statistics Canada reports that as of 2021, there are more than 1.6 million widows and nearly half a million widowers (1). And the financial impact of losing a spouse falls hardest on women: those who were widowed before age 55 saw their average after-tax family income drop from $64,700 to $49,600 in the year following their partner’s death. Perhaps even more striking is that the proportion of those women living in the low income bracket jumped from 7.7% to nearly 22% that same year.

The numbers make a difficult case. Preparation doesn’t only need to be thoughtful — it’s necessary.

Surviving spouses often face financial hardship

The financial shock of losing a spouse rarely announces itself in advance. In Canada, surviving spouses may face an immediate drop in household income, a reduction in Canada Pension Plan (CPP) survivor benefits — which replaces only 60% of the decedent's benefit for those over age 65, and even less for younger survivors — and the sudden burden of managing finances alone, often for the first time (2).

A 2025 survey by Willful and Angus Reid found that nearly half of Canadians have never discussed estate planning with a financial advisor, largely because conversations feel too uncomfortable to start, the survey suggests (3). Over half of the respondents said they have a will, but millennials and Gen Z often neglect to have these conversations.

That discomfort has consequences: when the discussions don’t happen, surviving spouses are left to figure finances out during one of the hardest periods of their lives.

How couples can prepare their surviving partners

Some couples have found practical, creative ways to make sure the surviving partner won’t be blindsided.

Scanning and uploading all important documents to a shared cloud folder, such as Google Drive, means everything is accessible from anywhere, even if the surviving spouse has never managed the finances. Others set up joint accounts or establish an enduring power of attorney so the surviving partner has immediate legal access to assets without court delays.

Some take a more hands-on approach: one partner handles all financial decisions and tax filings with the other observing and asking questions, so that when the time comes, the process is already familiar. Others keep a regularly updated document — sometimes called a “survivor’s binder” — to outline what to do in case of incapacity or death. It lists all key contacts and accounts, and maps out their recommended financial approach moving forward.

Adult children being included in these conversations is another approach that works well for many families, particularly when a trusted financial adviser is already in place.

How to get started

The best time to have this conversation is well before you need to. FP Canada recommends working with a certified financial planner to ensure both partners understand the full picture — and the data backs it up (4). People who work with a financial professional are significantly less likely to experience money-related stress and more likely to feel confident about their financial futures.