Things to Consider When Marrying After 60
When two seniors fall in love and decide to get married, planning for their marriage would involve more than when and where they will be exchanging theirs vows. Given that they both have their own pasts, they will also have to make critical decisions about very important matters that involve their finances, assets, retirement, and children from their previous spouses.
To make sure that your financial interests as individuals and as a couple are protected as you enter into marriage, it will be advisable to discuss the following:
Senior individuals entering marriage have already accumulated significant assets, making it a little more difficult to merge, especially when they have different spending and saving styles. Also, having young children from their previous partner might also present some issues, such as the payment or receipt of child support.
It will be beneficial for both parties to discuss their credit histories and agree upon how they will be sharing their paychecks, savings, and payments of bills and debts. You may also want to set up a joint account, aside from your individual accounts, and plan how to save for your retirement. Both of you will have to agree on how much you would want to contribute to your joint account initially upon opening it and every month thereafter. This account could be used for paying your bills while your individual accounts will be your personal savings. Having a joint account is also a good way to ensure that both of you have access to your combined funds in case you or your spouse dies, as it is bank practice to freeze an individual account in the event of death and require a probated will.
Larry Luxenberg, a financial adviser with Lexington Avenue Capital Management, stresses on the importance of estate planning, “People think estate planning is for very wealthy people. But neglecting to plan can cause conflict after one partner’s death.”
Estate planning is very important in making sure that your family’s financial needs and goals are met once you have passed, especially if you have children or a deceased spouse. It is recommended that you update your respective powers of attorney. You may also want to change your beneficiaries for your wills, life insurance policies, retirement accounts, investment funds, and other financial accounts. We recommend that you consider buying life insurance and assign your adult children as the beneficiaries to ensure that they get an inheritance.
Senior newlyweds might also have to get in touch with Canada Pension Plan and update them with their name change so their earnings are properly reported. If you were widowed prior to your present or upcoming marriage and have been receiving a combined monthly benefit that includes your survivors benefit from your previous spouse or common law partner, it is best to contact CPP in order to determine what benefits you are entitled to.
Your new marriage may affect the benefits you receive from Medicare, especially if you marry someone with a higher income. Since Medicare is based on household income, marrying someone with a higher monthly revenue may cause you to lose your coverage. We suggest that you check the eligibility rules so you are aware of how your marriage could impact your Medicare health benefits.
A marriage at any age is a wonderful thing. But for seniors, marrying after 60 can affect your personal and family’s finances. It is best to discuss each other’s financial situations and future goals, so these are all sorted out and you can both have peace of mind and focus on your love for each other.