Hostname: page-component-78c5997874-v9fdk Total loading time: 0 Render date: 2024-11-02T22:58:37.846Z Has data issue: false hasContentIssue false
  • English
  • Français

The Management of Retirement Savings Among Financially Heterogamous Couples

Published online by Cambridge University Press:  14 December 2020

Maude Pugliese  and
Hélène Belleau
Maude Pugliese
Affiliation:
Institut national de la recherche scientifique, Canada E-mail : [email protected]
Hélène Belleau
Affiliation:
Institut national de la recherche scientifique, Canada E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Retirement scholars (and policy makers) have traditionally assumed spouses share their retirement savings, even when they are financially heterogamous and their individual saving capacities diverge. Recent research, however, has challenged this assumption, emphasising that wealth is unequally distributed within couples. In this study, we contribute to this debate by exploring how often financially heterogamous spouses describe their management of retirement savings as joint and redistributive. Data collected in Québec (Canada) in 2015 show that 28 per cent of couples with an income differential report to balance retirement savings across partners. Building on exchange and institutional theories of conjugal behaviour, we also stress that the prevalence of this practice varies with several factors, including union duration and matrimonial status. These findings suggest policy makers underestimate the size of the population at risk of old age financial vulnerability when assuming lower-income individuals are well prepared for retirement if partnered with a better-off spouse who saves.

Keywords

Retirement Savingsintra-household economieseconomic heterogamyconjugal redistributionconjugal money management
Type
Article
Information
Social Policy and Society , Volume 20 , Issue 4 , October 2021 , pp. 580 - 598
Copyright
© Cambridge University Press 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Addo, F. R. (2017) ‘Financial integration and relationship transitions of young adult cohabiters’, Journal of Family and Economic Issues, 38, 1, 84–99.CrossRefGoogle ScholarPubMed
Amuedo-Dorantes, C., Bonke, J. and Grossbard, S.A. (2011) ‘Income pooling and household division of labor: evidence from Danish couples’, IZA Discussion Papers, no. 5418, 1–22.CrossRefGoogle Scholar
Ashby, K. J. and Burgoyne, C. B. (2008) ‘Separate financial entities? Beyond categories of money management’, Journal of Socio-Economics, 37, 2, 458–80.CrossRefGoogle Scholar
Ashby, K. J. and Burgoyne, C. B. (2009) ‘The financial practices and perceptions behind separate systems of household financial management’, Journal of Socio-Economics, 38, 3, 519–29.CrossRefGoogle Scholar
Beck, U. and Beck-Gernsheim, E. (1995) The Normal Chaos of Love, Translated by Ritter, M., and Wiebel, J., Cambridge: Polity Press.Google Scholar
Becker, G. S. (1981) A Treatise on the Family, Cambridge, Mass.: Harvard University Press.Google Scholar
Belleau, H. (2012) Quand l’amour et l’état rendent aveugle, Montréal: Presses de l’Université du Québec.Google Scholar
Belleau, H. (2015) ‘D’un mythe à l’autre: De l’ignorance des lois à la présomption du choix éclairé chez les conjoints en union libre’, Canadian Journal of Women and the Law, 27, 1, 1–21.CrossRefGoogle Scholar
Belleau, H. and Proulx, R. (2010) ‘Équilibre et déséquilibre des comptes amoureux contemporains: Le revenu familial remis en question. l’exemple québécois’, Recherches familiales, 7, 1, 85–101.CrossRefGoogle Scholar
Belleau, H., Lavallée, C. and Seery, A. (2017) Unions et désunions conjugales au Québec: Rapport de recherche . Première partie: Le couple, l’argent et le droit, Montréal: INRS Centre-Urbanisation Culture Société.Google Scholar
Bennett, F. and Sung, S. (2013) ‘Dimensions of financial autonomy in low/moderate-income couples from a gender perspective and implications for welfare reform’, Journal of Social Policy, 42, 4, 701–19.CrossRefGoogle Scholar
Bennett, F., De Henau, J., Himmelweit, S. and Sung, S. (2012) ‘Financial togetherness and autonomy within couples’, in Scott, J., Plagnol, A. C. and Dex, S. (eds.), Gendered Lives: Gender Inequalities in Production and Reproduction, Cheltenham, UK: Edward Elgar Publishing.Google Scholar
Bianchi, S. M., Milkie, M. A., Sayer, L. C. and Robinson, J. P. (2000) ‘Is anyone doing the housework? Trends in the gender division of household labor’, Social Forces, 79, 1, 191–228.CrossRefGoogle Scholar
Bisdee, D., Daly, T. and Price, D. (2013) ‘Behind closed doors: older couples and the gendered management of household money’, Social Policy and Society, 12, 1, 163–74.CrossRefGoogle Scholar
Brines, J. (1994) ‘Economic dependency, gender, and the division of labor at home’, American Journal of Sociology, 100, 3, 652–88.CrossRefGoogle Scholar
Brines, J. and Joyner, K. (1999) ‘The ties that bind: principles of cohesion in cohabitation and marriage’, American Sociological Review, 64, 3, 333–55.CrossRefGoogle Scholar
Burgoyne, C. B. and Lewis, A. (1994) ‘Distributive justice in marriage: equality or equity?’, Journal of Community and Applied Social Psychology, 4, 2, 101–14.CrossRefGoogle Scholar
Burgoyne, C. B. and Morison, V. (1997) ‘Money in remarriage: keeping things simple - and separate’, Sociological Review, 45, 3, 363–95.CrossRefGoogle Scholar
Campanale, C., Fugazza, C. and Gomes, F. (2015) ‘Life-cycle portfolio choice with liquid and illiquid financial assets’, Journal of Monetary Economics, 71, 67–83.CrossRefGoogle Scholar
Carman, K. G. and Hung, A. (2017) Household Retirement Savings: The Location of Savings between Spouses, SSRN Scholarly Paper ID 2910773, Rochester, NY: Social Science Research Network.CrossRefGoogle Scholar
Cherlin, A. J. (2004) ‘The deinstitutionalization of American marriage’, Journal of Marriage and Family, 66, 4, 848–61.CrossRefGoogle Scholar
Clarkberg, M., Stolzenberg, R. M. and Waite, L. J. (1995) ‘Attitudes, values, and entrance into cohabitational versus marital unions’, Social Forces, 74, 2, 609–32.CrossRefGoogle Scholar
Costa, D. L. (1998) The Evolution of Retirement: An American Economic History, 1880-1990, Chicago: University of Chicago Press.CrossRefGoogle Scholar
Deere, C. D. and Doss, C. R. (2006) ‘The gender asset gap: what do we know and why does it matter?’, Feminist Economics, 12, 1–2, 1–50.CrossRefGoogle Scholar
Dillman, D. A., Smyth, J. D. and Christian, L. M. (2014) Internet, Phone, Mail, and Mixed-Mode Surveys: The Tailored Design Method, 4th edn, Hoboken, NJ: Wiley.Google Scholar
Eickmeyer, K. J., Manning, W. D. and Brown, S. L. (2019) ‘What’s mine is ours? Income pooling in American families’, Journal of Marriage and Family, 81, 4, 568-78.CrossRefGoogle Scholar
Enders, C. K. (2010) Applied Missing Data Analysis, New York: Guilford Press.Google Scholar
Evertsson, L. and Nyman, C. (2014) ‘Perceptions and practices in independent management: blurring the boundaries between “mine,” “yours” and “ours"’, Journal of Family and Economic Issues, 35, 1, 65–80.CrossRefGoogle Scholar
Foster, L. (2011) ‘Privatisation and pensions: what does this mean for women?’, Journal of Poverty and Social Justice, 19, 2, 103–15.CrossRefGoogle Scholar
Foster, L. (2017) ‘Young people and attitudes towards pension planning’, Social Policy and Society, 16, 1, 65–80.CrossRefGoogle Scholar
Giddens, A. (1992) The Transformation of Intimacy: Sexuality, Love, and Eroticism in Modern Societies, New York: Polity.Google Scholar
Girard, C. (2012) Naissances et Fécondité: Le Bilan Démographique Du Québec, Édition 2012 [Birth and Fertility: Quebec Demographic Report, 2012 Edition], Québec: Institut de La Statistique Du Québec.Google Scholar
Gough, O. and Adami, R. (2012) ‘Welfare systems and adequacy of pension benefits in Europe’, Social Policy and Society, 11, 1, 41–53.CrossRefGoogle Scholar
Gough, O. and Adami, R. (2013) ‘Saving for retirement: a review of ethnic minorities in the UK’, Social Policy and Society, 12, 1, 147–61.CrossRefGoogle Scholar
Grabka, M. M., Marcus, J. and Sierminska, E. (2015) ‘Wealth distribution within couples’, Review of Economics of the Household, 13, 3, 459–86.CrossRefGoogle Scholar
Hamplová, D., Le Bourdais, C. and Lapierre-Adamcyk, E. (2014) ‘Is the cohabitation–marriage gap in money pooling universal?’, Journal of Marriage and Family, 76, 5, 983–97.CrossRefGoogle Scholar
Haussen, T. (2019) ‘Intra-household income inequality and preferences for redistribution’, Review of Economics of the Household, 17, 2, 499–530.CrossRefGoogle Scholar
Heimdal, K. R., and Houseknecht, S. K. (2003) ‘Cohabitating and married couples’ income organization: approaches in Sweden and the United States’, Journal of Marriage and Family, 65, 3, 525–38.CrossRefGoogle Scholar
Hiekel, N., Liefbroer, A.C. and Poortman, A-R. (2014) ‘Understanding diversity in the meaning of cohabitation across Europe’, European Journal of Population, 30, 4, 391–410.CrossRefGoogle Scholar
Kan, M. Y. and Laurie, H. (2014) ‘Changing patterns in the allocation of savings, investments and debts within couple relationships’, The Sociological Review, 62, 2, 335–58.CrossRefGoogle Scholar
Langley, P. (2008) The Everyday Life of Global Finance, Oxford: Oxford University Press.CrossRefGoogle Scholar
Lauer, S. R. and Yodanis, C. (2011) ‘Individualized marriage and the integration of resources’, Journal of Marriage and Family, 73, 3, 669–83.CrossRefGoogle Scholar
Lauer, S. R. and Yodanis, C. (2014) ‘Money management, gender, and households’, in Treas, J., Scott, J. and Richards, M. (eds.), The Wiley Blackwell Companion to the Sociology of Families, Chichester, UK: John Wiley and Sons, Ltd.Google Scholar
Lavallée, C., Belleau, H. and Guilhermont, E. (2017) ‘La situation juridique des conjoints de fait Québécois’, Droit et Cultures. Revue Internationale Interdisciplinaire, 73, 69–89.Google Scholar
Leckey, R. (2009) ‘Families in the eyes of the law’, Institute for Research on Public Policy Choices, 15, 1-44.Google Scholar
Lee, J. and Pocock, M.L. (2007) ‘Intrahousehold allocation of financial resources: evidence from South Korean individual bank accounts’, Review of Economics of the Household, 5, 1, 41–58.CrossRefGoogle Scholar
Lersch, P. M. and Vidal, S. (2016) ‘My house or our home? Transitions into sole home ownership in British couples’, Demographic Research, 35, 139–66.CrossRefGoogle Scholar
Lewis, J. (1993) Women and Social Policies in Europe: Work, Family and the State, Brookfield, VT: Edward Elgar.Google Scholar
Lusardi, A. and Mitchell, O. S. (2007) ‘Baby boomer retirement security: the roles of planning, financial literacy, and housing wealth’, Journal of Monetary Economics, 54, 1, 205–24.CrossRefGoogle Scholar
Lyngstad, T. H., Noack, T. and Tufte, P. A. (2011) ‘Pooling of economic resources: a comparison of Norwegian married and cohabiting couples’, European Sociological Review, 27, 5, 624–35.CrossRefGoogle Scholar
McCarthy, M. A. (2017) Dismantling Solidarity: Capitalist Politics and American Pensions since the New Deal, Ithaca, NY: Cornell University Press.CrossRefGoogle Scholar
Metzger, C. (2018) ‘Intra-household allocation of non-mandatory retirement savings’, Journal of the Economics of Ageing, 12, 77–87.CrossRefGoogle Scholar
Miller, A. R. (2013) Marriage Timing, Motherhood Timing, and Women’s Well Being in Retirement, Stanford: Stanford University Press.Google Scholar
Nock, S. L. (1995) ‘Commitment and dependency in marriage’, Journal of Marriage and Family, 57, 2, 503–14.CrossRefGoogle Scholar
Nyman, C. (1999) ‘Gender equality in “the most equal country in the world”? Money and marriage in Sweden’, The Sociological Review, 47, 4, 766–93.CrossRefGoogle Scholar
Pahl, J. (1995) ‘His money, her money: recent research on financial organisation in marriage’, Journal of Economic Psychology, 16, 3, 361–76.CrossRefGoogle Scholar
Payne, S. H., Yorgason, J. B. and Dew, J. P. (2014) ‘Spending today or saving for tomorrow: the influence of family financial socialization on financial preparation for retirement’, Journal of Family and Economic Issues, 35, 1, 106–18.CrossRefGoogle Scholar
Pepin, J. R. (2019) ‘Beliefs about money in families: balancing unity, autonomy, and gender equality’, Journal of Marriage and Family, 81, 2, 361-79.CrossRefGoogle Scholar
Perelli-Harris, B. and Sánchez Gassen, N. (2012) ‘How similar are cohabitation and marriage? Legal approaches to cohabitation across western Europe’, Population and Development Review, 38, 3, 435–67.CrossRefGoogle Scholar
Price, D. (2006) ‘Gender and generational continuity: breadwinners, caregivers and pension provision in the UK’, International Journal of Ageing and Later Life, 1, 2, 31–66.CrossRefGoogle Scholar
Raijas, A. (2011) ‘Money management in blended and nuclear families’, Journal of Economic Psychology, 32, 4, 556–63.CrossRefGoogle Scholar
Ravazzini, L. and Kuhn, U. (2018) ‘Wealth, savings and children among Swiss, German and Australian families’, in Tillmann, R., Voorpostel, M. and Farago, P. (eds.), Social Dynamics in Swiss Society: Empirical Studies Based on the Swiss Household Panel, Cham, Switzerland: Springer International Publishing.Google Scholar
Rottke, S. and Klos, A. (2016) ‘Savings and consumption when children move out’, Review of Finance, 20, 6, 2349–77.CrossRefGoogle Scholar
Roy, A. (2011) ‘L’évolution de la politique législative de l’union de fait au Québec’, in Belleau, H. and Martial, A. (eds.), Aimer et Compter?, Québec: Presses de l’Université du Québec.Google Scholar
Schneider, D. M. (1968) American Kinship: A Cultural Account, Chicago: University of Chicago Press.Google Scholar
Schwartz, C. R. (2010) ‘Earnings inequality and the changing association between spouses’ earnings’, American Journal of Sociology, 115, 5, 1524–57.CrossRefGoogle ScholarPubMed
Shin, E., Johnson, T. P. and Rao, K. (2012) ‘Survey mode effects on data quality: comparison of web and mail modes in a US national panel survey’, Social Science Computer Review, 30, 2, 212–28.CrossRefGoogle Scholar
Stanley, S. M., Rhoades, G. K. and Markman, H. J. (2006) ‘Sliding versus deciding: inertia and the premarital cohabitation effect’, Family Relations, 55, 4, 499–509.CrossRefGoogle Scholar
Statistics Canada (2020a) Table 17-10-0060-01: Estimates of Population as of July 1st, by Marital Status or Legal Marital Status, Age and Sex, https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710006001 [accessed 04.11.2020].Google Scholar
Statistics Canada (2020b) Highest Certificate, Diploma or Degree (9), Family Characteristics of Adults Including Presence and Ages of Children (12), Age (9) and Sex (3) for the Population Aged 15 Years and Over in Private Households of Canada, …https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/…, [accessed 04.11.2020].Google Scholar
Statistics Canada (2020c) Marital Status (13), Age (16) and Sex (3) for the Population 15 Years and Over of Canada, Provinces and Territories and Census Metropolitan, https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/dt-td/Rp-eng.cfm?LANG=E&APATH=3&DETAIL=0&DIM=0&FL=A&FREE=0&GC=0&GID=0&GK=0&GRP=1&PID=109650&PRID=10&PTYPE=109445&S=0&SHOWALL=0&SUB=0&Temporal=2016&THEME=117&VID=0 [accessed 04.11.2020].Google Scholar
Statistics Canada (2020d) Table 11-10-0012-01 Distribution of Total Income by Census Family Type and Age of Older Partner, Parent or Individual, https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110001201 [accessed 04.11.2020].Google Scholar
Stocks, J. and Halleröd, B. (2007) Modern Couples Sharing Money, Sharing Life, New York: Springer.CrossRefGoogle Scholar
Sutherland, E. E. (2013) ‘From “bidie-in” to “cohabitant” in Scotland: the perils of legislative compromise’, International Journal of Law, Policy and the Family, 27, 2, 143–75.CrossRefGoogle Scholar
Sweeney, M. M. (2002) ‘Two decades of family change: the shifting economic foundations of marriage’, American Sociological Review, 67, 1, 132–47.CrossRefGoogle Scholar
Swidler, A. (2003) Talk of Love: How Culture Matters, Chicago: The University of Chicago Press.Google Scholar
Treas, J. (1993) ‘Money in the bank: transaction costs and the economic organization of marriage’, American Sociological Review, 58, 5, 723–34.CrossRefGoogle Scholar
van der Zwan, N. (2014) ‘Making sense of financialization’, Socio-Economic Review, 12, 1, 99–129.CrossRefGoogle Scholar
Vogler, C. (1998) ‘Money in the household: some underlying issues of power’, The Sociological Review, 46, 4, 687–713.CrossRefGoogle Scholar
Vogler, C. and Pahl, J. (1993) ‘Social and economic change and the organisation of money within marriage’, Work, Employment and Society, 7, 1, 71–95.CrossRefGoogle Scholar
Vogler, C. and Pahl, J. (1994) ‘Money, power and inequality within marriage’, The Sociological Review, 42, 2, 263–88.CrossRefGoogle Scholar
Vogler, C., Brockmann, M. and Wiggins, R. D. (2006) ‘Intimate relationships and changing patterns of money management at the beginning of the twenty-first century’, The British Journal of Sociology, 57, 3, 455–82.CrossRefGoogle Scholar
Vogler, C., Brockmann, M. and Wiggins, R. D. (2008) ‘Managing money in new heterosexual forms of intimate relationships’, The Journal of Socio-Economics, Special Issue on the Household Economy, 37, 2, 552–76.Google Scholar
Yodanis, C. and Lauer, S. (2007) ‘Managing money in marriage: multilevel and cross-national effects of the breadwinner role’, Journal of Marriage and Family, 69, 5, 1307–25.CrossRefGoogle Scholar