By Sarah Stewart Legal Group

Research shows that 5% of first marriages and 20% of second marriages are between couples with an age difference of at least 10 years. Married couples with age gaps face different financial planning challenges than their counterparts of the same age.

If you or someone you love is a partner in an age gap marriage, here are 6 things you must consider to ensure a healthy future and retirement.

(1) Plan For the Younger Spouse

Many Americans struggle to save enough for their own retirement.  If you add a younger spouse into the equation, it can be even harder. When the older spouse starts to near retirement age, you should consider how you will continue to invest and how much you can withdraw to protect the younger spouse’s retirement.

Couples with a significant age gap may need to put more of their retirement into stocks than same aged couples. They also need to take care with their withdrawals.  Too much withdrawal too soon can deplete your retirement and not allow for enough growth for the younger spouse.

(2) Timing Retirement

Usually, couples prefer to retire at the same time.  Age gap couples have to balance working long enough to save enough for retirement with retiring early enough to fulfill their retirement goals with their spouse while they are both able.

Early retirement can stop retirement savings from growing enough to support both spouses and can affect Social Security payments after retirement.

Social Security is calculated based on your highest 35 years of pay, so if you have not worked for 35 years or are making much more now than you did before, early retirement can affect your income.

(3) Retirement Distributions

At 70 1/2 most IRAs and employer-held retirement accounts require you to take distributions from the account. Age gap couples can use a rule that allows them to take less in distributions than other same-age couples.

To use this benefit, the spouse must be at least 10 years younger and a beneficiary of the account. The benefit increases the larger the age gap. This benefit allows you to keep money in the account to grow longer.

(4) Use that Pension

If one of you is fortunate to have pension benefits, you will need to choose the right survivor option. Joint survivor options will generally lower the initial payments of the benefit, but will allow the benefit to continue through the life of the younger spouse.

(5) Plan Social Security

When the older spouse earns a higher wage, it can be smart to wait to take their benefit until the spouse is 70. The benefit will grow between 6.5 % and 8 % annually and the survivor benefit will be higher.

The Social Security Administration provides a retirement estimator you can use to estimate your benefits.

(6) Unique Wealth and Family Planning

Many remarried couples with age gaps will need to consider planning for children from prior marriages. Under Oklahoma law, if there is no plan, the spouse will take 1/2 of marital property and an equal portion of non-marital property to the deceased’s children.  If this is not the outcome you want, you need to use estate planning tools to properly plan for your estate.