Older Americans are increasingly getting remarried. Those who do need to understand what it means for their finances and estate plans.
So-called grey marriages are increasing in the U.S. These are marriages that occur when the new spouses are in their retirement years.
It is a good thing that so many people are finding love in their later years. However, too many of them are not adjusting their finances and estate plans to account for their new situations.
That can lead to consequences down the road, as the Pittsburgh Post-Gazette discusses in “Late-life marriages can be complicated by money matters.”
The first problem is with retirement savings.
People who are newly married do not usually want to sit at home and be frugal. They would prefer to have fun with their new spouses, which often means going out for dinner more often and going on more vacations.
Having more fun in retirement is a good thing. However, people need to plan for it. They need to make sure they have enough funds to continue to support themselves in retirement.
The second problem is with estate planning.
In grey marriages, the new spouses often have children and even grandchildren from previous marriages.
It is important to craft estate plans that take care of families from prior marriages, while at the same time making sure the new spouse has adequate means of support.
This can all be accomplished but it requires some planning. The new spouses must work together to make sure that both of their families get what they deserve.
Reference: Pittsburgh Post-Gazette (Nov. 6, 2017) “Late-life marriages can be complicated by money matters.”
