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DC Households Keep it Together

While different households handle their finances in different ways, there is a pattern associated with whether a member of the household participates in a defined contribution plan.

According to Spectrem’s latest Defined Contribution Market Insights report, "Financial Attitudes and Concerns of Retirement Plan Participants," 62% of DC plan participants pool all of their household finances. Just over a quarter of DC plan participants say they pool most of their financial assets, but each member of the household maintains their own accounts as well.

Nine percent of DC plan participants manage their finances individually, with some financial decisions and purchases pooled, according to the report. Only 4% say they manage their finances separately from their spouse or partner.

As far as how couples that include a DC plan participant handle their financial decisions:
• 29% say the husband or man makes the decisions;
• 9% say the wife or woman makes the decisions; and
• 61% of all make all financial decisions together.

Financial issues can have adverse effects on relationships. But according to the Spectrem report, DC plan participants and their spouses are generally in agreement when it comes to their finances. Using a sliding scale in which “0” indicates less agreement and “100’ means more, plan participants rate the relationship with their spouses on financial issues at 76.51. In general, the older the participant, the more agreement there is, reaching as high as 81.56 among investors aged 65 and higher.

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