Singles Behind in Retirement Savings

Art by Aart-Jan Venema

Being single as opposed to having the support of a spouse puts a person at a financial disadvantage in many ways, TD Ameritrade found in a survey of 2,000 adults ages 37 and older.

While 44% of single people save for retirement, about 20% more married people do—63%. Just 34% of singles expect to be financially secure in retirement, compared with 52% of married folk. Forty-six percent of the unmarried worry about running out of money in retirement, compared with 38% of those who are married. Thirty-six percent of singles doubt they will be able to afford to fully retire, compared with 29% of marrieds.

Thirty percent of singles are not saving for anything, compared with 17% of married people, TD Ameritrade found. Twenty-seven percent of singles have an emergency fund, compared with 39% of marrieds. But even in tough times, 40% of singles would not cut back on eating out, and 25% would not give up buying coffee or take-out.

Singles also earn less than their married peers; their average income is $52,900, compared with an average $61,700 for marrieds—a difference of $8,800.

“While an increasing number of Americans are finding that remaining single can have its virtues, there is one key area making the single life potentially more difficult: money,” says Lule Demmissie, managing director of retirement and long-term investing at TD Ameritrade. “Having a spouse to split the mortgage, household expenses and insurance can make basic living costs more manageable. On top of that, for couples who file jointly, marriage can help reduce their tax burden.”