Financial Considerations When Getting Married Later in Life

Getting married is exciting no matter your age. But when you’ve already spent years building wealth and planning for the future, there are special considerations to consider when you get married. 

Knowing the best ways to combine finances after marriage is important. So, whether you are walking down the aisle for the first time, or have found love again, here are some considerations to help you navigate money and marriage when you’re more mature. 

As you plan for your wedding and beyond, reach out to Farm Bureau to ensure both you and your spouse have the protection you need.

Combining Finances 

For many couples, getting married when they’re older allows them to support each other financially, increase their buying power and provide a larger financial cushion for retirement. 

For older couples with significant financial assets, however, getting married could result in a much higher tax bill. It’s also not unusual for couples to have financial commitments from a previous marriage, including child support, alimony, mortgage payments, memberships and more. 

People getting married later in life have likely already established money management styles and will need to discuss how they plan to combine finances. That’s why it’s important to spend time doing some financial planning as a couple. Have an open conversation about which expenses each spouse expects the other to contribute to their household, and stick to the agreed-upon financial arrangement. 

Understanding Social Security Payments

As a married couple, once you’re eligible to collect Social Security, you’re each able to receive your own benefit or up to 50% of your spouse's benefit, whichever is greater. This can be a financial plus if one of you is a higher earner. In addition, a widow or widower is eligible to collect up to 100% of the other's benefit. And if you’re already collecting Social Security retirement or disability benefits, marriage won’t result in a reduction of those payments.

Supplemental Social Security

However, if you’re receiving Supplemental Social Security or other benefits, one of the disadvantages of late marriage is the way it could affect that income. Your SSI payment amount may change as a result of your new spouse’s income and resources, and if you and your spouse both get SSI, your payment amount will change from an individual rate to a couple’s rate.

Survivor Benefits

Marriage also can affect your payments from a deceased former spouse, whether or not you were married when they passed away. Generally, if you remarry, survivor benefits paid to you from your prior spouse’s account stop.

Consult a Farm Bureau agent and current Social Security regulations to find out what your exact situation will be.

Considering Estate Planning

A married person can generally leave an unlimited amount of money to their spouse without paying any estate tax. In addition, the surviving spouse can use any unused portion of the deceased spouse's lifetime estate tax exclusion upon his or her death. 

However, when you marry, existing estate plans  may need to be updated, wills  may need to be revised, new beneficiaries  may need to be designated and a power of attorney  may need to be signed. A beneficiary review should also be done with all bank accounts, investments, life insurance and annuity policies to make certain the proceeds get paid according to your wishes. 

If one or both partners have children, you’ll want to have conversations about any potential inheritances, both with your new spouse and with your children. 

And there’s always the chance that things won’t work out. If assets are inequitable, a prenuptial agreement may be a good idea. 

Navigating Health Insurance

Getting married older can be beneficial when it comes to combining health insurance. Couples are generally eligible to enroll in their spouse’s plan when they sign their marriage licenses. 

However, if you receive medical insurance through a government-sponsored plan, and your new combined income is greater than the plan’s income threshold, it could result in higher out-of-pocket medical costs for you.

Understanding Other Insurance Implications

When you and your new spouse combine households, you will often combine insurance plans, one of the benefits of marrying later in life. From auto to homeowners insurance, you may be able to get a more favorable rate when you get married. 

But if your spouse has a poor driving record or a teenage driver on their policy, you may see your insurance rate go up. When you make major life changes, it’s always beneficial to let your local agent know so they can review your account to uncover additional savings you may qualify for. 

Protect Your Future

Your Farm Bureau agent has financial tools for any age and stage of life. Let’s work together to protect your future.