Once you’ve said “I do” to a life together with your significant other, you may find new meaning in the old adage “two is better than one”, just as I did. Joining forces through marriage may mean that you’re both healthier because you stay fit together, eat better and don’t skip medical appointments. It could also mean lower rates of depression because of the emotional closeness and social support that marrying the one you love brings. However, can marriage make couples better off financially? Are married couples wealthier and more financially stable?

While money is the last thing on your mind when you’re in love and there are so many stories of relationships falling apart because of money, it is actually possible for two people in a healthy relationship to find themselves financially better off after they’ve settled down together. Furthermore, working at your finances together – just like building a family nest, raising kids and other couple goals – can have a positive effect on your happiness and relationship as husband and wife.

Financial benefits of saying “I do”

Just tied the knot or planning to do so? Here are some financial benefits of getting married you could look forward to.

Higher loan for your dream home: A joint home loan doesn’t just let you share the debt burden. Your combined income power could help you secure a higher loan for your dream home. But tread carefully, as your other loans and financial commitments as a couple should be considered before making big purchases. You should also remember that even though you’re married, the lender will still consider your individual credit score or overall financial health when determining your loan amount – that’s good reason to pay your credit card bills promptly, never default on loans, keep loan and credit card enquiries to a minimum, and limit yourself to four or five open or active credit lines (credit cards, personal loans, etc).

Tax relief for wife: If you’re a Singaporean married to an NSman who’s eligible for the NSMan Self Relief, you’ll be eligible for the NSMan Wife Relief. The relief amount is quite significant at S$750, and should you become widowed, you’ll continue to receive this relief as long as you don’t remarry.

Greater tax savings when you start a family: When you become parents, you can claim Qualifying Child Relief of up to S$4,000 per child as well as Parenthood Tax Rebate of S$5,000 for your first child, S$10,000 for your second child, and S$20,000 each for your third and every subsequent child¹. These reliefs can be shared between you and your spouse, so you can apportion it in a way that yields the highest tax savings for you both.

Savings and perks with supplementary credit cards: When you apply for a supplementary credit card as a spouse of a principal cardholder, some banks will charge a lower annual fee or waive it altogether. At the same time, you can take advantage of credit card rewards that the principal card holder is entitled to. By sharing the credit card account with your partner, you could accumulate the minimum spend faster – especially helpful if you need to hit a high figure like S$2,000 within 30 days. You’ll also find it easier to accumulate the qualifying expenses needed to unlock higher tier rewards and cashback, as well as waivers on your annual card fee.

Better retirement options: While many newlyweds are financially independent before marriage and continue to maintain good financial habits after tying the knot, the fact that marriage offers a financial safety net in the long term can’t be ignored, especially during retirement. According to one report, the monthly household budget needed for a basic standard of retirement among people aged above 65 in Singapore is a S$1,379 for a single person and S$2,351 for a couple². The savings you’d enjoy by simply retiring together could be channelled into things like annual holidays or a more comfortable retirement. Tip: By naming each other as beneficiary of your CPF money or life insurance or savings plan, you’ll have the assurance that should either of you pass away, the other will continue to have financial support.

Some insurance may be cheaper: Has your new husband done National Service? If he has, and he signs up for voluntary coverage under MINDEF and MHA Group Insurance, which comes at affordable rates, you get to sign up for the same coverage at the same low rates. You can get up to S$1 million in coverage for Group Term Life and Group Personal Injury. When you have kids together, they can be covered under these schemes too.

Final note on marriage and money

The (financial) power of two can be a boost to an already healthy and happy relationship. Getting married and staying married to each other can bring greater financial security to you both as long as you have shared financial objectives and embrace healthy money management habits. Continue to have open and frank discussions about your finances so you can put your money to work and achieve your couple goals.

Finally married to your soulmate? If you’ve served NS, you can cover your spouse under the value-for-money MINDEF and MHA Group Insurance (Voluntary Scheme) that they’re eligible for.

^Notes

^{1. Source: Inland Revenue Authority of Singapore, Tax Reliefs, Rebates and Deductions, accessed on 22 March 2023.}

^{2. Source: The Straits Times © Singapore Press Holdings Limited. Extracted with permission. “Single elderly Singaporeans need $1,379 a month to meet basic living standard: Study”, 22 May 2019.}

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