Money talk for age-gap pairs

FINANCIALS: STRATEGIES FOR MIXED-AGE MARRIAGES ARE KEY TO AVOID RISK OF FAILURE

- Craig Torr

Couples with significant age differences are more likely to have blended families, often including children from previous relationships. Research indicates marriages with large age gaps face higher risks of failure, as each partner is typically at different emotional and financial stages in life.

These complex dynamics give rise to a special set of financial planning considerations which should be considered as early in the relationship as possible.

Risk cover When evaluating risk cover, the age and health of the older spouse can greatly affect their insurability. For those wishing to provide financial support for a younger spouse through a life policy, obtaining cover may be both challenging and expensive.

It is important to acknowledge that disability cover for the older spouse may decrease or cease between ages 60 and 70, presenting a risk if they intend to work beyond this age, especially if the couple depends on that income.

Furthermore, if the older spouse has dependants or financial obligations from a previous relationship, careful structuring and careful beneficiary nominations on life policies are vital to ensure all financial responsibilities are met.

Estate planning When the older spouse has children or maintenance obligations from a previous relationship, comprehensive estate planning is essential.