Retirement Planning for "Non-Traditional" Families

Today's retirees are healthier and wealthier than any generation before them, but that presents a unique set of challenges. On top of that, the American family structure is changing -- blended families and single women face their own challenges when planning for retirement.

A MetLife Family Matters study examines the legal, financial, and planning needs that are universal to all families as well as those that are specifically applicable to the different family types. Included in the study are tips designed to provide some basic guidance on savings, pensions, insurance, home ownership, dependent care, estate planning, and other areas.

Blended Families

With the high U.S. divorce rate (some statistics claim it's as high as 50 percent) "blended" families, a.k.a. stepfamilies, are bcoming the norm. Planning for retirement is tougher and more complicated for middle-aged Americans who are single or married with children from previous relationships than it is for those with "traditional" families. According to MetLife, 40 to 65-year-olds with non-traditional familiesfind it harded to save an invest, and are less likely than others to have a distinct retirement vision.

MetLife suggests these tips to blended families planning their retirement:

• Determine whether or not your ex-spouse will rely on you for support in retirement. You may find yourself planning for two separate retirements -- yours and his/hers.
• Keep the lines of communication open -- especially concerning children and how costs for college, a wedding and/or health care will be covered.
• Understand the laws in your state regarding asset division -- who gets what and when.
• Update your designated beneficiaries for all your retirement plans/accounts and insurance policies. Retirement assets and life insurance typically go to your beneficiary, despite the fact that you may be remarried.
• Consider establishing a living trust to protect assets that are designated for your children to prevent an ex-spouse or anyone else from access to assets. Some examples include child support, education, special needs and medical purposes. Trusts can be established for many purposes.
• Seek counsel from a lawyer and a certified public accountant to assist with estate planning -- estate planning is no longer just for the wealthy.
• When purchasing a home with your current spouse, consider who will be named on the deed. This affects how funds are distributed upon sale of the property.
• If you or your spouse have children from a previous relationship, consider whether you want your new spouse to adopt your children or become a guardian. Both options establish important rights related to care, parenting and financial responsibility for the children.
• Without a will, in most cases, a large portion of your estate will go to your spouse. A will is necessary in order to divide assets and property among your spouse, your children or other family members, depending on your wishes. Your will should also designate someone to care for your children. Otherwise, the court will make this decision.