Image credit: Getty
Get all our latest money stories and exclusive offers direct to your inbox. Sign up here.
This article is for general guidance only and is not financial or professional advice. Any links are for your own information, and do not constitute any form of recommendation by Saga. You should not solely rely on this information to make any decisions, and consider seeking independent professional advice. All figures and information in this article are correct at the time of publishing, but laws, entitlements, tax treatments and allowances may change in the future.
There are plenty of people – including numerous Saga customers – who would heartily agree with the twin dictums that age is nothing more than a number and that you’re as old as you feel. It’s not uncommon, age-wise, for there to be several years between you and your other half.
But as we get older, the more of a time differential that there is between us can, potentially, lead to an increasing number of financial headaches. Here’s how to head off those issues at the pass, by identifying the potential mistakes worth avoiding and ensuring that your retirement plans aren’t derailed.
What’s on this page?
Just under a third (31%) of married and cohabiting couples have an age gap of five years or more, according to official figures from the Office for National Statistics.
That difference might have no bearing at all in your day-to-day relationship. But it can have a significant impact on your retirement plans if you’re not prepared.
The state pension age is currently rising, from 66 in April 2026 to 67 in April 2028. Although this change might seem slight, it potentially worsens financial issues in age gap relationships during retirement. Hurdles can also arise where one of you retires first. But there can also be problems if you both stop work together.
Sarah Coles, head of personal finance at investing platform AJ Bell, warns that: “Age is just a number, but if there’s a big age gap between a couple in later life, it can cause financial headaches.”
Susan Hope, a pensions expert at Scottish Widows, explains that the nub of the problem is where a couple is working on two different financial timelines.
“While one of you may be ready to retire, the other might still be working and cannot yet access their workplace or state pension. That can leave couples trying to fund one retirement, one working life, a mortgage, everyday spending and bills from the same household income.”
In some cases, the younger partner might decide to retire early, but that decision will also increase pressure on the household’s finances.
AJ Bell has identified five financial pinch points that are worth addressing:
Hope says that the sensible approach is to build a plan around both of your retirement timelines.
“Work out when each pension becomes available and what guaranteed income you will have at each stage. Reassess your monthly expenditure which will help you notice whether you'll need savings to bridge any gaps.
“You should also talk about whether the younger partner will continue working, reduce their hours, or retire early and calculate what that could cost them in lost earnings, household income and pension contributions.”
But bear in mind that none of this should jeopardise either party’s long-term security.
Hope adds: “Women may already have a smaller pension and would need that retirement income to last considerably longer. Both partners should understand the joint household finances, of course, but each should retain pension savings and investments in their own name.”
A sad element of age gap relationships is one of you is likely to outlive the other. Apart from all the emotional pain, failing to address this point could have disastrous financial consequences.
Kerry Vilchez, a financial planner at Shackleton Advisers, says it’s essential to think about how long your combined wealth needs to last and what happens when you die. “Even a modest age-gap can mean one partner needs retirement income for much longer than the other.
“Age gaps can also make estate planning more important, particularly where there are children from previous relationships to consider.”
So, while neither of you are much likely to relish discussing death, it’s important these topics are tackled instead of ending up as becoming the elephant in the room.
Scottish Widow’s Susan Hope suggests a couple starts by working out what impact the first death would have on the survivor’s finances. “Check what income would stop, whether any survivor’s pension would be payable and whether the remaining partner could afford to stay in the family home,” she suggests.
You should also arrange lasting power of attorney. This is the legal exercise that allows you to appoint one or more people to act on your behalf in terms of carrying out financial transactions, should you become unable to do yourself. In a similar vein, make sure you have written a will and that pension nominations are up to date.
The latter involves deciding who would be the beneficiary from any death benefit that might have been available from a previous company pension scheme.
Times change and people’s lives move on. Decisions you took about potential beneficiaries 20 years ago might have changed significantly in the interim. Especially if you’re single, divorced, or have children from previous relationships.
For many couples, it will make sense to get financial advice to ensure your plan caters properly for you both. Kerry Vilchez says: “Cashflow forecasting can help test whether pensions and savings will last.”
It will also ensure you’ve got the flexibility you need. If one of you needs care, for example, plans may need to change.
Vilchez adds: “With an age gap, retirement is often a journey rather than a single event. So it's important to review your pensions, investments and income needs regularly.”
Talking to a solicitor and getting wills that are professionally drafted ensure that your loved ones are looked after when you die and that your money is distributed as you wish.
Without the necessary planning, making the move into retirement can be trickier than it needs to be. Here’s how to make a successful switch.
Pension rules are changing. If you’re retiring soon, here’s what to bear in mind.
Being unable to find a will is a problem for executors and beneficiaries alike. Here’s how best to store the paperwork and keep tabs on it.
