May-December Love Brings Financial issues

BOSTON (TheStreet) -- The hazards of a May/December romance go far beyond raised eyebrows or having to endure a waitress greeting your "son" or "daughter." There is also a whole set of financial issues.

Retirement planning is one area where an age gap can pose problems. In couples with partners of roughly the same age, and nearing retirement together, saving and spending patterns are likely to be in sync. With age differences comes a different timeline and set of priorities. An older partner may be winding down their spending at a far greater pace than the younger.

"You are going to have issues relating to cash flow as it relates to these individuals approaching retirement where there is a 15- or 20-year age difference, even a 10-year difference," says Mike McGervey, CFP, president of McGervey Wealth Management in North Canton, Ohio. "You are basically going to be on one income for that period of time, which can put a demand on what is typically some of the largest earning years for most traditional couples, where they are really packing most of their savings in for the 10 years before they officially retire."

It is common for an older partner in a May/December romance to have had a previous husband or wife. If the younger partner has also moved on from a past significant relationship, there are multiple families being melded. The older party may have already planned on being down with supporting their kids and paying college tuitions, only to find the process starting all over again with the new family.

"They thought this was off the plate, and they were walking into retirement in a position where they could be financially independent," McGervey says. "But having a spouse who is much younger and has a family can change that picture quite a bit."

Life insurance and estate planning issues also get more complex.

A younger partner might face a hardship in the event an older breadwinner dies prematurely. In other cases, the earning power of the younger partner may be a lifeline for their older mate.