Approximately one-third of couples have an age gap of five years or more, raising unique financial planning challenges as they approach later life. Differences in retirement timing, family responsibilities, and care needs can complicate how partners manage their finances, pensions, and assets.
Mark and Kelly, a couple with an age gap, illustrate some of these considerations. Mark plans to retire in his 60s while Kelly hopes to continue working beyond state pension age in a more flexible role, allowing them to travel together. Their financial strategy includes maximizing pension contributions—helped by Mark’s employer matching contributions—and maintaining joint life insurance to cover their mortgage. They also intend to increase their savings once their children are older.
Starting a family later in life is increasingly common, with the average age of new parents at 31 for women and 34 for men. Data from 2025 shows over 1,100 births to fathers aged over 60, meaning many will still have school-age children upon entering retirement. Financial advisers warn that couples in this situation must carefully plan how to support dependents on potentially reduced pension incomes, particularly when factoring in childcare, education, and housing costs.
Life insurance policies remain a key consideration, as they can provide lump sum payments to cover mortgage arrears, childcare expenses, or daily living costs in the event of a partner’s death. Additionally, care costs in later life pose significant financial risks. Residential care currently averages around £1,100 per week, increasing to approximately £1,450 for nursing home care. Eligibility for council assistance depends on total assets, with those holding more than £23,250 required to cover these expenses themselves.
Experts caution that transferring assets to a spouse to sidestep care fees—known as deliberate deprivation of assets—is scrutinized and may not prevent charges. Couples are advised to seek professional guidance to arrange assets in a tax-efficient and compliant manner.
Legal preparations are equally important. Establishing lasting power of attorney allows one partner to make decisions regarding health and financial affairs if the other becomes incapacitated. Both forms—health and welfare, and financial and property—are recommended. Updating wills and pension beneficiary nominations is crucial, especially given that defined benefit pension schemes may reduce or deny survivor benefits if the age gap exceeds certain thresholds or in the case of remarriage.
Lucie Spencer, a later life financial adviser, emphasizes that larger age differences intensify the need for accurate estate planning, ensuring that the surviving partner has reliable access to jointly held and individually owned assets to support their financial needs in retirement.
Financial advisors also offer practical advice for couples with significant age differences. These include adjusting the division of household expenses to reflect disparities in earning and retirement status, openly discussing expectations when one partner retires earlier, considering life insurance to protect both parties, and proactively setting up legal and financial protections.
By addressing these factors early, couples can better navigate the complexities that arise from age disparities and secure their financial wellbeing as they move into later life.