Updated
Updated · Morningstar · Aug 20
Christine Benz Urges 40-Year Retirement Plans for Age-Gap Couples, as 10-Year Gaps Hit 8%
Updated
Updated · Morningstar · Aug 20

Christine Benz Urges 40-Year Retirement Plans for Age-Gap Couples, as 10-Year Gaps Hit 8%

2 articles · Updated · Morningstar · Aug 20

Summary

  • Age-gap couples should plan around the younger spouse’s longer lifespan, which can stretch retirement horizons to 40 years and calls for smaller withdrawals plus higher equity exposure, Christine Benz said.
  • Social Security strategy is especially important when the older spouse was the higher earner: delaying claims until 70 can lift survivor benefits for the younger partner over a longer lifetime.
  • A spouse more than 10 years younger can also reduce required minimum distributions if they are the sole IRA beneficiary, because a different IRS life-expectancy table applies.
  • Healthcare and care planning can upend same-time retirement goals: the younger spouse may need bridge coverage before Medicare, and Benz said long-term-care planning should prioritize that partner.
  • Large age gaps remain uncommon in U.S. marriages—about 8% of couples are 10 years apart and roughly 1% are 20 years apart.

Insights

How can a ten-year marital age gap secretly unlock IRS rules to shrink your mandatory retirement withdrawals?
Could delaying your Social Security claim actually be the ultimate financial lifeline for a much younger spouse?
Will retiring at the same time bankrupt you if your younger spouse hits a pre-Medicare coverage gap?