Many married couples view retirement planning as a team effort. But when it comes to saving for their golden years, couples often do it independently — and that can mean leaving hundreds of dollars on the table each year.
A new study from the Center for Retirement Research at Boston College found that nearly 1 in 5 couples fail to maximize employer-matched contributions to their workplace retirement plans, missing out on an average of $757 a year. Over time, that missed income can add up to thousands in lost retirement savings.
The issue isn’t that couples aren’t saving enough — nearly 6 in 10 Americans report having money in some sort of retirement savings plan. Instead, researchers found that they often do not coordinate those contributions.
“I see this gap all the time in the dual-income couples I work with: They think about saving for retirement individually, not as a household plan,” says Jeff Judge, managing partner at Chesapeake Financial Planners.
If one spouse has more access to the employer’s open match than the other, directing contributions to the account with the higher match first can increase the family’s overall retirement savings. Yet many couples fail to take advantage of this opportunity, missing out on what is often described as “free money” — the so-called additional contributions made by the employer based on how much the employee saves.
“The ‘free money’ framework is accurate, and that’s exactly what makes the omission so surprising,” added Judge. “Most couples ignore their 401(k). They contribute regularly. But they don’t compare the matching rates between their two plans, and that comparison is the whole game.”
In practice, the calculations depend on how the two systems are constructed. Enrollment materials rarely prompt employees to think about coordinating retirement contributions across the household, so the strategy rarely comes naturally.
Why couples are leaving 401(k) matching funds on the table
Boston College researchers found that most couples understand the basics of their workplace retirement plans and are not confused about how employer matching works. They may not realize that combining contributions from both spouses’ plans can increase the total amount of matching that their family receives.
“Sometimes life can get in the way,” says Evan Potash, a wealth management consultant at TIAA Wealth Management. “People can’t act if they don’t know they’ve missed their perfect employer game.”
While retirement plan rules and contribution limits can change from year to year, Potash says the biggest challenge is getting couples to look at retirement savings as a shared family goal rather than a separate account.
The report also found that couples with strong signs of financial integration — such as joint bank accounts, mortgages or children — are less likely to miss out on employer matching contributions, suggesting that retirement integration may be part of a broader approach to managing household finances.
The truth is that missing an employer’s game can be costly. But advisers say the underlying problem — treating retirement savings as separate rather than shared — can create widespread financial blind spots.
“Losing free money is a significant mistake in itself, but the risks are deeper,” Potash said. “Assets accumulated during marriage are generally considered joint assets when a couple separates.”
Because married couples file joint taxes, retirement decisions often affect the entire family. Failure to coordinate can make it difficult to take advantage of tax-saving strategies, such as converting traditional 401(k) or individual retirement account (IRA) funds to a Roth before required withdrawals begin later in retirement.
How to coordinate retirement savings without giving up independence
Consolidating retirement savings doesn’t require consolidating accounts or giving up financial independence. Rather, it’s about viewing retirement savings as a collective goal and making sure that contributions are directed where they will have the greatest impact.
“Each couple can keep their accounts, the names of their beneficiaries and their donation decisions,” said the Judge. “What’s changing is the sequence. Take out more with the big match first, then direct more savings to the second account. That’s not a loss of control; that’s just better math.”
It can be as simple as checking in with your spouse at least once a year, ideally at the beginning of tax season.
“Tax season is a natural target as you collect W-2s and other documents,” Potash added. “That is a good time to review the contributions of the previous year, assess where you stand and decide where you should be.”
