Key Takeaways
- Married workers hold far higher retirement balances and overall assets than unmarried peers.
- Divorced, widowed, and separated workers are most likely to tap retirement funds early.
- Structural income and wealth gaps—not just habits—contribute to the divide, but there are ways to strengthen your position.
A new report from the National Institute on Retirement Security (NIRS), based on U.S. Census data of workers ages 21 to 64, highlights how typical retirement balances lag what workers should aim to accumulate over time.
The findings also reveal a sharp divide based on marital status—one that extends beyond retirement accounts and into broader household wealth.
Marriage Marks a Sharp Divide in Retirement Savings
Marital status shapes retirement savings in ways that are hard to ignore. Married workers have a median retirement account balance of $20,000, compared with just $2,000 for workers who have never married—a tenfold difference. (Median represents the middle value, meaning half of workers have more and half have less.)
The pattern also holds when looking at averages rather than medians. Married workers have an average retirement account balance of more than $147,000, compared with about $59,000 for workers who have never married.
Zooming out beyond retirement accounts makes the gap even more pronounced. Married households report roughly $606,000 in average total assets, versus about $231,000 for never-married workers—nearly a threefold difference. That broader measure includes retirement savings, home equity, businesses, and other financial holdings.
Several structural factors help explain the difference. Marriage often brings two incomes, shared housing costs, and pooled retirement contributions. Over time, those advantages can compound—especially in tax-advantaged accounts like a 401(k) or individual retirement account (IRA).
Divorced and Widowed Workers Face the Steepest Retirement Strain
Workers who have never married and those who are divorced, widowed, or separated are often grouped together. But the report suggests their financial patterns differ in important ways.
One striking difference is how often—and how much—these previously married workers have dipped into their retirement accounts.
Nearly 9% of divorced, widowed, or separated workers withdrew money from defined contribution (DC) retirement accounts (e.g., 401k and IRA plans), compared with 4.8% of workers who have never married and 3.9% of married workers. In other words, they are tapping their savings at roughly twice the rate of married peers.
And when they do withdraw funds, they tend to take out more. On average, divorced, widowed, and separated workers pulled 23.1% of their account balances, versus 20.7% for never-married workers and 17.8% for married workers.
Life transitions such as divorce or the loss of a spouse can significantly disrupt household finances. A split often involves dividing assets, taking on new housing costs, and possibly adjusting to a single income. For some workers, tapping retirement savings becomes a way to manage those sudden shifts.
The Financial Impact Can Be Long-Term
Early withdrawals can trigger taxes and penalties, but the longer-term impact may be even more significant. Money taken out today no longer compounds over time, shrinking the cushion available in retirement.
Why Married Households Often Pull Ahead
The financial edge seen among married households doesn’t happen by accident. It tends to reflect several reinforcing advantages that can build over time.
Dual-income households may be able to contribute more consistently to workplace retirement plans. Sharing housing, transportation, and other fixed costs can also lower per-person expenses, freeing up more room for savings. Married workers may further benefit from coordinated retirement strategies, such as aligning contribution levels or planning around Social Security claiming decisions.
Home equity is another important piece of the picture. The report shows that married households report a median of $150,000 in home equity, while never-married and divorced or widowed households report $0 in median home equity. Housing wealth may not function as a direct replacement for retirement savings, but it can strengthen overall net worth and provide financial stability.
At the same time, averages can obscure ongoing challenges. Even among married households, median retirement balances remain modest relative to commonly cited retirement savings benchmarks.
How Single and Previously Married Workers Can Strengthen Their Position
While marital status is associated with differences in savings outcomes, individuals can still take steps to improve their financial trajectory over time.
- Maximize employer matches: Capturing the full employer contribution in a workplace retirement plan is one of the fastest ways to boost long-term growth.
- Avoid premature withdrawals: Preserving retirement assets—even during major life transitions—protects the compounding effect that builds balances over decades.
- Increase contributions gradually: Many retirement plans allow automatic annual increases of 1%. Small adjustments can add up significantly over time.
- Build liquidity outside retirement accounts: A stronger emergency fund can reduce the need to tap retirement savings during income disruptions or unexpected expenses.
- Retirement security isn’t determined by one life event: Consistent saving and disciplined withdrawals can help narrow gaps and protect long-term financial stability.
Taken together, these steps can help workers strengthen their footing and protect the savings they’ll rely on in retirement. While marital status may influence the path, steady planning and consistent contributions can still shape the outcome.