Getting married as an older couple may have it’s benefits for the relationship, but there are many financial things that can complicate matters and should be carefully considered before saying “I do.” Couples over the age of 50 have many more things to consider than couples in their 20s. Of course there are the important decisions of whose house to live in and whether or not you will share a checking account, but older adults also may be paying for their children’s college, already own insurance policies, and have retirement savings to take into account. Here are a few things for older couples to should consider before walking down the isle.
Financial Goals and Circumstances It’s important to consider your financial goals and circumstances as well as your spending habits in any marriage, but it’s especially important if you’ve been doing things differently than your future spouse for the last 20 – 30 years. Open communication from the beginning can set the stage for a peaceful marriage in the years to come.
Social Security Benefits and Pension Plans If you’re eligible to receive, or are already receiving social security benefits based on your ex-spouse’s record, you cannot continue collecting these benefits if you remarry. Visit the Social Security Administration’s website to see how divorce and remarriage will affect your eligibility. Proper planning can optimize social security benefits. One spouse may defer to a later age and/or one spouse may elect to receive it earlier.
Also, if you are widowed and eligible to collect benefits based on your deceased spouse’s record, your eligibility will only continue if you do not remarry (up until age 60). More information about this can be found on the Social Security Administration’s website.
Similar rules also apply to certain pension plans, so be sure to read the fine print so you know what to expect once your marriage is official.
Your Children’s Financial Aid for College If you have children in college or who will be in college in the future, your new spouse’s income and assets will be taken into account by the government to determine how much financial aid they are eligible to receive. Be sure to read up on financial aid guidelines to know how your new marriage will affect your children’s’ eligibility.
Estate Planning Be sure to update your will to ensure that your assets will go where you want them to go. Each state varies on whether your assets go to your children, spouse or both, and taking the time to consider this and update the paperwork will save everyone a lot of heartaches.
Alimony You may no longer be able to continue collecting alimony from your former spouse if you remarry, so be sure to consider how the loss of that income will affect your future financial situation before tying the knot.
Beneficiaries Be sure to consider who you want listed as your beneficiary on your retirement account, and get those documents updated if needed. And if you haven’t updated those documents since your previous marriage, this is a good opportunity to remove your former spouse if they are still listed.
Despite the complications getting married as an older couple can pose on a relationship, there are also many benefits that far outweigh the challenges. Just be sure to take the time to consider everything that may affect your relationship, not only with your future spouse, but also with your children and other family members.
