I Do … Want to Save: Marriage and Retirement Savings in Young Households

TLDR

Policy and academic attention has intensified on promoting early retirement savings, while theoretical links between marriage and young adult savings remain underexplored. This study investigates how retirement savings behavior among young adults differs by marital status. Using national survey data from the U.S. Federal Reserve Board's Survey of Consumer Finances (ages 22–35, N = 3,894), the authors analyze savings patterns.

Abstract

Increased policy and academic attention has been placed on promoting retirement savings early in the life course. This study investigates the extent to which retirement savings behavior among young persons, a population for which retirement savings is important but typically low, differs by marital status. We draw national survey data on young adult households (ages 22–35 ; N = 3,894) from the U.S. Federal Reserve Board's Survey of Consumer Finances (SCF). Results reveal considerable differences by marital status. Controlling for important characteristics, young adults who were married were more likely than all other groups (including cohabitors) to perceive retirement as an important savings goal and to have an individual retirement account. Married persons were more likely than their single counterparts to participate in a defined contribution pension plan. Single women fared particularly poorly on retirement savings outcomes. A range of possible theoretical links between marriage and retirement savings at young adulthood are discussed.