Planning Around an Age Gap

A significant age difference between spouses can present unique challenges for financial and estate planning. The needs of the younger spouse may be quite different from the older spouse. Several areas of concern are worth examining.

Health Care Dilemma

If the family relies on an older spouse’s health insurance at work, that spouse’s retirement might leave the younger spouse and any minor children without coverage. In this case, the older spouse may consider delaying retirement until the younger spouse is covered by Medicare as opposed to paying for private insurance.

Essential Estate Planning

Since it’s likely that the younger spouse will outlive his or her partner, an estate plan must provide for the younger spouse and minor children while ensuring that any children from a previous marriage aren’t disinherited.

Long-term Care Insurance

Paying for long-term care in an assisted living or skilled nursing facility can exhaust a couple’s assets, potentially leaving the healthy spouse without enough money for living expenses. Long-term care insurance can help pay the costs of care and can be a valuable part of a financial plan.

A Place for Life Insurance

Life insurance can be essential for couples with an age difference. Because the younger spouse may need money for many years into the future, life insurance can replace lost income, provide money for a child’s college education, and pay for services once performed by the deceased spouse.

Work with your estate planning attorney and financial professional to help ensure all of your bases are covered.