Marital Status and Retirement Preparation

Marital status has a big impact on how prepared an individual is for retirement, according to a working paper published by Michael Hurd and Susann Rohwedder of the RAND Corporation. The authors concluded that 71% of people aged 66 to 69 are adequately prepared for retirement. Married couples skewed the number upward, with 80% of couples prepared. Only 55% of single persons are adequately prepared, however. Education, gender and changes in both consumption and income also play a role.

The study defined a couple or individual as being adequately prepared if it seemed probable that they would have positive wealth at death, based on assumed consumption rates. Married women were the most prepared, slighting besting husbands. Even married high school dropouts were largely prepared (70%).

Single women in the study’s lowest education group were the least prepared (29%). Not surprisingly, only 37% of all single persons with a financial planning horizon of just a few months are adequately prepared.

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Log in
Already registered with AAII? Login to read the rest of this article.

Register for FREE
to read this article and receive access to future articles.


David from Georgia posted over 2 years ago:

A huge hole in the statistics involving single people involves gays in long term relationships. Their retirement planning would be together, but statistics would show them as single. If 10% of the population is gay and 6% are in relationships that equals 12% of singles.

You need to log in as a registered AAII user before commenting.
Create an account

Log In