How do I plan my finances after my husband dies?
Give yourself time. Keep any lump sum somewhere safe and easy to reach while you work out your new income and outgoings. Then look at your own pension and State Pension, what protection you need, and your will. Decisions that are hard to undo, such as buying an annuity or moving home, can wait until you feel ready.
Published . General information, not financial advice.
When is the right time to make big decisions?
There is no fixed rule, and grief affects everyone differently. What helps is separating decisions that can be undone from those that can't. Moving money into an easy-access savings account can be reversed. Buying an annuity, cashing in a pension or selling a home usually can't.
In the early months, aim to keep things steady. Pay the bills, keep a buffer and let money sit while you think. It is fine to say no to anyone pressing you for a decision, including family.
Large sums attract scammers. Be wary of unexpected calls, emails or offers about investments or pensions, and check any firm on the FCA register before you hand over money.
How do I work out what I can afford now?
Start with your new monthly income. It may include your own pay or pension, a survivor's pension, Bereavement Support Payment, other benefits and any income from savings.
Then list your outgoings. Some fall, such as food and travel. Others don't, because a home costs much the same to run for one person as for two. If you now live alone, the single person discount takes 25% off your Council Tax.
Our budget calculator helps you set the two side by side. If there's a gap, it is better to see it now than in a year's time. If you are on a low income, check again whether you can get Universal Credit or Pension Credit.
What should I do with an inherited lump sum?
Nothing quickly. While you decide, keep it in cash. The FSCS protects up to £120,000 per person at each bank, building society or credit union. For six months after an inheritance or insurance payout, it protects temporary high balances of up to £1.4 million.
If you have debts, especially expensive ones like credit cards, paying them off often comes first. Then build an emergency fund to cover a few months of essential bills.
The tax-free ISA allowance is £20,000 for 2026/27. If your husband, wife or civil partner had ISAs, you can also pay in extra up to their value, on top of your own allowance. Investing for the long term, rather than holding cash, is where regulated financial advice is most useful.
Will I have enough for my own retirement?
Losing a partner often means losing the second pension you were counting on. Look at your own position separately.
Get a State Pension forecast. It shows how much you could get, when, and whether you might fill gaps in your National Insurance record with voluntary contributions. You may also have inherited a little extra State Pension from your partner. Our page on your husband's pension explains the rules.
Then gather statements for your own workplace and personal pensions. The pension gap calculator compares what you are on course for with what you might need. If you are 50 or over and have a pension pot, Pension Wise offers free guidance on your options.
Do I need to change my will and insurance?
Probably. If your will left everything to your partner, it may no longer do what you want. Make a new one, especially if you have children, stepchildren or a home owned with someone else.
Update the expression of wish on each of your own pensions, and the beneficiaries on any life insurance. These don't follow your will.
Think about who depends on your income now. If children rely on you, life insurance or income protection may matter more than it did. It is also worth setting up a lasting power of attorney, so someone you trust can manage your money if you can't.
Keep a note of how much of your partner's Inheritance Tax threshold was unused. Your executors can claim it when you die.
Should I stay in our home?
For many people the home is both the biggest asset and the place most full of memories. There is no right answer, and no need to decide in the first year unless money forces it.
Start with the numbers. Work out what the home costs each month, including the mortgage or rent, Council Tax, energy, insurance and upkeep, and compare that with your new income. If the mortgage was paid off by insurance, staying may be affordable even on a lower income.
If you are thinking of moving to somewhere smaller, remember the costs of moving, such as legal fees and, in England and Northern Ireland, Stamp Duty on the new home. Our stamp duty calculator gives an estimate. If you own your home outright and are older, equity release may be suggested to you. It is a long-term commitment that reduces what you leave behind, so take regulated advice before agreeing to it.
Related questions
How long should I wait before making financial decisions after a bereavement?
There is no set period. The common advice is to avoid decisions that are hard to undo, such as buying an annuity, cashing in a pension or selling your home, until you feel steadier. Keeping money in easy-access savings while you think costs little and keeps your options open. Pay priority bills and claim benefits on time.
Is my inheritance protected if the bank fails?
The FSCS protects up to £120,000 per person at each bank, building society or credit union. Money from an inheritance or insurance payout is covered up to £1.4 million for six months from when it reaches you, as a temporary high balance. Spreading larger sums across banks with separate licences keeps more of it protected.
Can I use my late husband's ISA allowance?
Yes, for deaths since 6 April 2018. As his widow you can pay extra into an ISA, up to the value of his ISAs either when he died or when the account was closed. This is on top of your normal £20,000 allowance. Ask your ISA provider how to make the payment and what time limits apply.