Retirement Planning? Couples, Mind the Age Gap

If you're a couple with an age-gap, you probably know it comes with many controversies. Yet, for you, that age-gap probably leads to your happiness either because you are young at heart or wise beyond your year.

You're not alone. There are many celebrity age-gapped couples. Leonardo DiCaprio and Camila Morrone have a 23-year age-gap. Jerry and Jessica Seinfeld have 17 years between them. There are 20 years between Kevin Costner and Christine Baumgartner. John Stamos and Caitlin McHugh have 22 years between them.

Yet, those celebrity age-gaped couples have one thing in common - a lot of assets. Despite that money, they probably have not considered how to address aging and retirement planning.

Real Challenges. Real Consequences 

However, the challenges are real for every age-gap couple, and it has nothing to do with what society or even your friends think of your relationship. You will need to address real-life challenges to continue your happiness. 

Your age-gap affects more than just the music you grew up listening to on the radio. Age will have a significant impact on all your financial and retirement planning. Retirement planning and the consequences of aging must be adjusted to include this age difference. 

There are several concerns that couples with age-gaps need to consider. Simple things like a date for retirement can be challenging since the younger spouse may not want to give up their career or may need employer benefits like health insurance. 

Stretch Retirement Savings 

These couples must consider how they will stretch retirement savings over a much longer period of time. Health and age events like long-term health care can significantly change the younger spouse's lifestyle.

Life expectancy will create a financial challenge. If the younger spouse is a female, they could live well into their 80s. A man's life expectancy will generally get them to their early 80s. Even a ten-year gap between two will mean your savings must last even longer compared to a couple that is only a few years apart in age. 

Many experts say allocating investments with the younger partner in mind means you'll take a more aggressive approach. This strategy should allow your money to grow and last longer, assuming a long-term health care event doesn't drain savings. 

Long-Term Health Care Costs Will Derail Your Retirement 

The cost of long-term health care is something that many financial advisors forget to consider. Long-term health care costs are rising rapidly. Greater lifespans, advances in medical science, and even better lifestyles mean a greater risk of living longer with chronic health problems or just aging frailty. Both mean paying for long-term health care.

The LTC NEWS Cost of Care Calculator illustrates the financial problem. Costs are rising nationwide, but costs do vary depending on where you live. The calculation still ends up being: expensive. Find the cost of all types of long-term health care where you live - Cost of Care Calculator - Choose Your State | LTC News.

Families Affected As Well 

Sure, the financial considerations can be substantial, especially when the younger partner may live many more years beyond the other. Yet, the consequences are more than money. These real consequences affect the entire family.

People require long-term health care due to declining health, accidents, and the frailty of getting older. If the age-gaped couple has children, they may not be best to be caregivers because they will be much younger. If there are children from a previous marriage, no matter the age, the stress and anxiety of being a family caregiver are not easy. Mixed marriages mean half-siblings, and that can add yet another dynamic. 

LTC Insurance is the Solution 

Affordable Long-Term Care Insurance will safeguard income assets and ease the burden on the other spouse and the remainder of the family. Many insurance companies offer shared spousal benefits as well. Plus, most states have partnership programs that provide additional dollar-for-dollar asset protection, which can shelter part of your estate for the benefit of the younger spouse and the rest of the family.

The reality of long-term care and aging is real. The consequences are real. You can avoid a crisis within the family by thinking of these problems before they become a crisis. 

Find a qualified and experienced Long-Term Care Insurance specialist to help you develop an appropriate plan. Insurance premiums vary over 100% between insurance companies, so be sure the specialist represents the top companies.

Enjoy your relationship. Many studies show age-gap couples are happy and stable. Just be sure to plan to make the downsides easier on everyone.