Older daters warned of financial pitfalls

Perth Now

2 days ago

As more Australians find new partners in their 40s, 50s, and beyond, these couples often bring with them substantial financial assets, including the family home and a large super pile which could be a risk without the proper conversations.
NGS Super financial planner Trudy Jenkin, told NewsWire, while it might not be the most romantic aspect of a relationship, it is important for couples dating later in life to get their finances sorted.
'It's definitely not romance but it can be union building in a way because if you're burying your head in the sand and issues arise down the track in a relationship, it can cause a lot more grief down the track,' she said. couples are getting together later in life. iStock Credit: istock
'But I think people who come together later in life are a lot more pragmatic about these things in terms of financial issues rather than couples who are much younger and you're much more comfortable joining a union because you're often saving towards a common goal like a family or a house.'
Ms Jenkins said older Australians who are dating in their 50s, 60s and 70s generally will have at least a modest super balance as well as equity in their family home meaning they have more wealth behind them they might think.
She also said these later in life couples also have considerations outside of the couple including helping children from previous relationships.
'They really want to protect their adult kids more potentially than a generation or two ago,' she said.
'It used to be okay. I've done my job, my kids are raised and they have their foot in the housing market.
'But now it may be well, so if something happens to me I want my kids to get my estate so they can at least buy a home that they might not be able to afford otherwise.'
Ms Jenkins' advice follows the latest yearly marriage stats released by the ABS in August 2024 showed 118,439 couples were married in Australia.
A further 48,700 divorces were granted, although this was a slight reduction from 2023, sliding 1.1 per cent. The Golden Bachelor, coming to Australia, will put a spotlight on later-life romance. Supplied Credit: Supplied
According to the ABS Aussies are also getting divorced later in life.
Men are now getting divorced at 47.1 years, which is 1.2 years older in 2023 compared with 2019, while for women it is up 1 year to 44.1 This was driven by a fall in divorces among younger people.
Ms Jenkins urged those who found a new partner later in life to start thinking about their financial situation as the relationship matures over a certain amount of assets held by the individuals.
'Nobody really wants to have these chats because it feels like if I do this then the inevitable will happen [and the couple breaks up].
'But if you get it done, put it in the bottom drawer then there's no grey areas.
'If you have great communication to start with on these matters then it's not going to be an issue that will cause grief down the track as both parties are clear and comfortable about their financial arrangements.'
With The Golden Bachelor – a television dating show featuring older Australians – coming to Australia in 2025, Ms Jenkins said the spotlight on later-life romance is intensifying.
'Many couples are so caught up in the excitement of new love that they overlook crucial financial considerations,' Jenkins says. 'This oversight can lead to significant problems down the track.'
Instead, she urges these couples, especially if one partner wants to protect their wealth coming into the relationship
'I don't think everybody necessarily needs a binding financial agreement but if you've got both parties on the same page about it, or at least one party wanting to protect their wealth, it certainly goes a long way to protecting that,' she said.
'You might have both people totally opposed to it and that's fine for their relationship … but with one in two couples ultimately separating the odds are necessarily in your favour.'