When you meet the love of your life, you often picture growing old together. But when there’s a big age gap between partners, that journey can look a little different. Retirement planning becomes less about following a standard plan and more about creating financial strategies to fit two different timelines, goals and lifestyles.
That’s where financial planning comes in. By taking a thoughtful, bespoke approach, couples can overcome these challenges and create a plan that works for both partners, today and into the future.
Budgeting is key to financial planning for couples with an age gap. Good budgeting manages different income streams and expenses and can save a lot for future goals. Saving should be the outcome of good budgeting and planning for long term financial security for both partners.
A Real-Life Example: Sarah and John
Sarah (55) and John (68) were an age gap couple. John wanted to retire and travel while Sarah was still invested in her career. They faced the classic challenges of an age gap couple: different retirement dates, different energy levels and different financial horizons.
Instead of letting these differences cause stress, they had open conversations. Together they:
- Shared their visions for retirement and found ways to compromise.
- Prioritised early travel while John was still active.
- Talked through health, longevity and financial security.
By having these honest conversations and working with a financial adviser, they were able to create a retirement plan that worked for both of them. In their first meeting with the adviser, Sarah and John had the opportunity to discuss their goals and learn about the services available, so they could make informed decisions. As clients, they got a personal approach, with their adviser tailoring strategies to their situation.
How They Created a Plan That Worked
1. Blending Work and Travel
Sarah structured her career to have income and adventure. She used long service leave, worked remotely and later took on contract roles. This gave her flexibility and financial stability.
2. Using the Tax-Free Pension Environment
John started an account-based pension, providing a tax-free income stream. They also used various financial products such as annuities and pensions to support their retirement income. This plus Sarah’s income and using banking services to manage their expenses and income, allowed them to maximise her superannuation contributions.
3. Centrelink Benefits
By contributing to Sarah’s superannuation, they reduced their assessable assets and John qualified for a partial Age Pension. This gave them extra income and more financial security.
4. Securing Long Term for Sarah
Knowing Sarah might outlive John, they invested in a Lifetime Annuity to guarantee her income for life. This gave them peace of mind about her financial future.
Choosing a Financial Adviser
Choosing the right financial adviser is a key part of securing your financial future especially when your retirement plans are more complex due to an age gap. A skilled financial planner can help you develop a bespoke financial plan, offer guidance on a wide range of investment options and create strategies that align with your goals.
When choosing a financial adviser look for someone with experience and the right qualifications, ideally a certified financial planner who understands your situation and objectives. Make sure they are committed to acting in your best interests and providing financial planning advice that is tailored to you.
Ask about the services they offer, their approach to planning and how they will help you achieve your goals. The right adviser will take the time to understand your objectives, explain your options clearly and provide ongoing guidance as your circumstances change. By working with a professional you can feel confident your financial plan is working for both you and your partner – today and into the future.
Financial Planning Strategies for Couples with an Age Gap
Age gap relationships bring unique challenges but also unique opportunities. Utilising financial planning services can help couples create a plan that suits their situation and goals. Here are some things to focus on:
Lifestyle Planning: Different ages mean different health stages, energy levels and timelines. Couples need to plan how they will travel, house and leisure will evolve over time.
Financial Planning, Superannuation & Income Streams: Both partners to be supported.
Centrelink Benefits: Assets to be structured to optimise eligibility.
Longevity Risk: Diversified investments or annuities to ensure income lasts across both lifetimes.
The advice provided by financial advisers in this area may be general advice, which means it is not tailored to your specific circumstances. Before acting on any general advice, it is important to check whether the adviser is an authorised representative, as this ensures they are qualified and regulated to provide such advice.
Estate Planning
The younger partner needs to be protected. This includes:
- Keeping wills and beneficiary nominations up to date.
- Establishing powers of attorney for financial and medical decisions.
- Considering trusts or testamentary arrangements for longer term security.
Debt and Financial Hardship
Debt and financial hardship is a key part of any robust retirement plan. If you’re facing financial challenges a financial adviser or financial planner can help you assess your current financial situation and develop a strategy to manage and reduce debt.
This process starts with a thorough review of your finances, then creating a realistic budget and prioritising your expenses. Your adviser may suggest options such as debt consolidation or restructuring to make repayments more manageable. The key is to act early, proactively managing debt can help you avoid long term financial stress and keep you on track to a comfortable retirement.
With the right guidance and a clear plan you can overcome financial obstacles, regain control of your finances and work towards your retirement goals. Remember seeking professional advice is a sign of strength and a smart step towards securing your financial future.
Taxation Planning
Taxation planning is a cornerstone of good financial planning especially for couples with different retirement timelines. A financial adviser can provide expert guidance on how to structure your finances to minimise tax liabilities and maximise your wealth.
A well crafted taxation plan takes into account your specific objectives, whether that’s retirement planning, investing or growing a business. By understanding your financial situation and long term goals a financial planner can help you navigate complex tax laws and regulations and ensure your investment decisions are tax efficient and aligned to your overall plan.
With professional advice you can make informed decisions that support your retirement and wealth building strategies and feel more confident in your financial future.
Don’t Forget Health and Wellness Matters
Money matters, but so does health. For couples with an age gap financial planning should also include strategies for healthcare costs, insurance and wellbeing. Setting aside funds for medical expenses, fitness and wellness programs can help both partners enjoy a vibrant and fulfilling retirement together.
Get Financial Guidance
Today getting quality financial guidance is easier than ever. Whether you prefer in-person meetings or online resources there are many ways to get the support you need. Consulting a financial adviser is a great starting point, they can help you develop a comprehensive financial plan, advise on investment options and guide you through retirement planning.
In addition to one-on-one advice many financial services providers offer educational resources such as financial services guides, online courses and short courses to help you build your financial knowledge. Certified financial planners are also available through many institutions providing expert guidance on everything from wealth management to retirement strategies.
By taking advantage of these resources you can boost your confidence in managing your finances, make informed investment decisions and work towards your long term goals. Whether you’re just starting to plan or looking to refine your strategy the right guidance can make all the difference in securing your financial future.
A Roadmap for Couples Like Sarah and John
Retirement planning is never one size fits all and with an age gap it can feel even more complicated. But Sarah and John’s story shows that with open conversations and the right financial planning advice you can create a roadmap that works for both partners. No matter the age difference now is the perfect time to start planning for your retirement together.
If you’re in a similar situation:
Start by talking openly about what matters most to each of you.
Work with a qualified financial planner to translate those conversations into a clear strategy.
Put the right structures in place to protect your lifestyle and long term security.
With the right guidance financial planning can give you confidence, clarity and the freedom to retire on your own terms, together. Financial planning can also give you the answers you need to navigate complex retirement decisions. To stay ahead consider seeking ongoing education through accredited programs or courses to stay informed about the latest financial planning strategies and options.
At Insight Wealth Planning we help couples navigate the complexities of retirement with tailored financial strategies. Book a consultation today.