Major Life Events That Change Your Finances in Your 70s

Spouse Death

The death of a spouse triggers a sequence of financial tasks. The first priority is contacting the Social Security Administration to report the death and evaluate survivor benefits. The surviving spouse receives 100% of the deceased spouse's benefit if it is larger than their own, but cannot collect both simultaneously. Benefits do not start automatically.

Next, notify financial institutions and custodians. Accounts held jointly typically transfer to the surviving spouse by operation of law, but individual accounts in the deceased's name alone require probate or trust distribution. Inherited IRAs from a spouse can generally be rolled into the surviving spouse's own IRA, which resets the RMD clock to the surviving spouse's own schedule rather than the 10-year rule that applies to non-spouse beneficiaries. Confirm with your custodian how each account is titled.

Tax filing changes from married filing jointly to single in the year following the death, which typically results in a higher effective tax rate. Plan for this in the first year after loss. An estate planning attorney and a CPA can coordinate the transition.

Moving to a CCRC

A continuing care retirement community (CCRC) provides independent living, assisted living, and skilled nursing care within one community, with guaranteed access to higher levels of care as needs change. Entry typically requires a substantial entrance fee (ranging from under $100,000 to over $1 million depending on the community and contract type) plus ongoing monthly fees.

Three CCRC contract types exist: Type A (life care or all-inclusive) covers all levels of care for a fixed fee and is the most predictable but also the most expensive upfront. Type B (modified) covers some care costs with additional fees for extended care. Type C (fee-for-service) requires payment at market rates for any care beyond independent living. Before signing, verify the refund policy on the entrance fee, the conditions under which monthly fees can increase, and the financial health of the community itself by reviewing audited financial statements. Have an attorney review the contract.

Moving to a CCRC often involves selling a home, which triggers capital gains considerations. A primary residence exclusion of up to $250,000 ($500,000 for a married couple) applies to gain on a home sold after living in it as a primary residence for at least 2 of the last 5 years.

Significant Health Events

A significant health event (hospitalization, surgery, major diagnosis) affects finances in two ways: direct costs, and the possibility that it changes the trajectory of care planning. On the cost side, confirm that all providers involved in a hospital stay are in-network for Medicare Advantage plans; surprise out-of-network billing is a common issue after hospitalizations. Review your Medicare supplemental coverage (Medigap) to understand what cost-sharing applies.

On the planning side, a significant health event is a natural trigger for reviewing your advance healthcare directive (living will), healthcare proxy, and the financial structures you have in place for incapacity. If you do not yet have a durable power of attorney, a significant health event is a reminder to execute one while you still have capacity to do so.

Cognitive Decline and the Proxy Process

Cognitive decline typically progresses gradually, which is an advantage for planning: the window between early signs and significant impairment is often long enough to make or update legal arrangements. If you observe early changes in financial decision-making (missed bills, unusual purchases, confusion about account balances), involve your physician and have an honest conversation with your named financial proxy or family about activating existing structures.

A durable power of attorney executed before incapacity gives your agent immediate authority to act. If no DPOA is in place and capacity is diminishing, the only legal mechanism for a family member to manage your finances is a court-supervised guardianship or conservatorship, which is costly and time-consuming. Early involvement of an estate planning attorney is the best course when cognitive changes are first noticed.

Related guides: Involving Family in Your Finances, Your Annual Financial Review Checklist, Estate Planning for Investors

Frequently Asked Questions