Could marriage solve the retirement crisis?

The recent financial pages are filled with dire warnings about the impact high household debt levels and inadequate retirement savings will have on our economy. Judging from the sheer volume of headlines, identifying the problem is the easy part but finding solutions is proving more elusive. However, new research is pointing to an unexpected answer, one that seems to be growing less popular in today’s society. It appears getting and staying married helps protect families from a financial crisis.

Although young people are generally less likely to consider retirement goals or save for the future, a study in the Journal of Marriage and Family indicates not all young adults think or act alike in this regard. The study found that married couples between ages 22 and 34 are more likely to plan for retirement and actually save for it than their single or cohabiting peers.

Given the financial industry has long extolled the benefits of starting early to save for retirement, marriage and the pro-savings behaviour that accompanies it bodes well for a more prosperous and secure retirement. The authors of the study speculate that the long-term commitment of marriage helps motivate married couples to invest in their future. However, more research is needed to determine exactly why marriage and retirement planning are so positively correlated.

In any event, it’s clear that young married couples are much more likely to plan and save for retirement and thus less likely to face financial insecurity later in life. By contrast, if young people continue to put off marriage or choose cohabitation or serial relationships, the growing retirement crisis brought on by an aging society will only worsen. While marriage is a private relationship, it has significant public implications that all of society has an interest in.