How to Close a Retirement Age Gap With Investing
The main goal in retirement planning when there’s an age gap should be reducing the likelihood that the younger partner will outlive a joint-nest egg, says Taylor Hammons, head of retirement plans at Kestra Financial. “Ensuring the younger partner will have sufficient income to last the duration of their life is one of the most crucial aspects of planning for these couples.” That means taking appropriate risk with investments. Hammons says it’s a mistake for couples to base their entire portfolio on the older partner, since that could cause the younger spouse to miss out on additional growth and earnings. “Age-gap couples should look at investing a higher percentage of their portfolio in stocks than a same-age couple would,” Hammons says. “This may help them capture enough growth to support both of their retirement time horizons.”
U.S. News & World Report, January 25, 2019
