Many Married Couples Are Missing Out on 'Free Money' for Retirement
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Many married couples approach retirement planning as a team effort. But when it comes to actually saving for their golden years, spouses often act independently — and that could mean leaving hundreds of dollars on the table each year.
A new study from the Center for Retirement Research at Boston College found that roughly 1 in 5 married couples fail to maximize employer matching contributions in their workplace retirement plans, missing out on an average of $757 annually. Over time, that missed money can compound into thousands in lost retirement savings.
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The issue isn’t necessarily that couples aren’t saving enough — roughly 6 in 10 Americans report having money in a retirement savings plan of some sort. Rather, researchers found that they often aren’t coordinating those contributions.
“I see this gap constantly with the dual-income couples I work with: They think about retirement savings individually, not as a household system,” says Jeff Judge, managing partner at Chesapeake Financial Planners.
When one spouse has access to a more generous employer match than the other, directing contributions to the higher-match account first can boost a family’s overall retirement savings. Yet many couples fail to take advantage of that opportunity, missing out on what’s often described as “free money” — aka the additional contributions an employer makes based on how much an employee saves.
“The 'free money' framing is accurate, and that's exactly what makes the miss so striking,” Judge adds. “Most couples aren't ignoring their 401(k)s. They're contributing regularly. But they're not comparing match rates between their two plans, and that comparison is the whole game.”
In practice, the math depends on how the two plans are structured. Enrollment materials rarely prompt workers to think about coordinating retirement contributions across a household, so the strategy rarely comes up on its own.
Why couples leave 401(k) match money on the table
The Boston College researchers found that many couples understand the basics of their workplace retirement plans and aren't necessarily confused about how employer matching works. They simply may not realize that coordinating contributions across both spouses' plans could increase the total match their household receives.
"Sometimes life can get in the way," says Evan Potash, executive wealth management advisor at TIAA Wealth Management. "People can’t act if they aren’t aware they are missing out on their full employer match."
While retirement-plan rules and contribution limits can change from year to year, Potash says the bigger challenge is getting couples to view retirement savings as a shared household goal rather than a pair of separate accounts.
The report also found that couples with stronger signs of financial integration — such as joint bank accounts, mortgages or children — were less likely to miss out on employer matching contributions, suggesting that retirement coordination may be part of a broader approach to managing household finances.
The reality is that missing out on an employer match can be costly on its own. But advisors say the underlying issue — treating retirement savings as separate rather than shared — can create broader financial blind spots.
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“Missing out on free money is a significant mistake on its own, but the risks go deeper,” Potash says. “Assets accumulated during a marriage are typically counted as joint assets should a couple split up.”
Because married couples file taxes jointly, retirement decisions often affect the household as a whole. Failing to coordinate can make it harder to take advantage of tax-saving strategies, such as converting traditional 401(k) or individual retirement account (IRA) savings into a Roth before required withdrawals begin later in retirement.
How to coordinate retirement saving without giving up independence
Coordinating retirement saving doesn’t require combining accounts or giving up financial autonomy. Instead, it’s about viewing retirement savings as a collective goal and making sure contributions are directed where they’ll have the greatest impact.
“Couples can each maintain their own accounts, their own beneficiary designations and their own contribution decisions,” Judge says. “What changes is the sequencing. Max out the more generous match first, then direct additional savings to the second account. That's not a loss of control; that's just better math.”
It can be as simple as having a financial checkup with your spouse at least once a year, ideally at the start of tax season.
“Tax season is a natural target since you are already gathering W-2s and other documents,” Potash adds. “That is a good time to review the prior year’s contributions, assess where you stand and determine where you should be.”