Federal law also confers a number of benefits and protections for married  spouses or former spouses.income, spouses or former spouses may receive retirement and survivor  income based exclusively on marriage, independent of their own work  history. This report focuses on four main sources of retirement income:  (1) Social Security retirement benefits, (2) defined benefit (DB) plans, (3)  defined contribution (DC) plans, and (4) individual retirement accounts   In the case of certain types of retirement  (IRA).provides varying types and levels of protections to spouses of workers  who are eligible for Social Security, participate in an employer sponsored  DB or DC plan, or own an IRA. The Decline in Marriage Is More Pronounced for Certain Demographic Groups

The decline in marriage has been more pronounced for certain racial and  ethnic groups as well as income and education levels. Further, from 1987 through  2010, the percentage of households in which the wives’ earnings  exceeded their husband’s rose from 24 to 38 percent. Trends in Marriage and Work Patterns Have Resulted in Fewer Women Receiving Social Security Spousal Benefits and Married Women Contributing More to Household Savings

		Fewer Women Are Receiving Social Security Spousal Benefits

Fewer women are receiving Social Security spousal benefits today than in  the past. At the same  time, as women’s workforce participation and earnings have risen, the  percentage of women receiving benefits based solely on their own work  record increased from about 39 to 48 percent. Married Women’s Contributions to Household Account-Based Retirement Savings Approach Men’s in Dual- Earner Households

With women’s rising workforce participation and earnings, married women  are contributing more to household account-based retirement savings, but  their share of contributions varies with the work patterns of the household. Over One-Third of Married Households Receiving Income from Pensions Opted Not to Receive a Survivor Benefit

Over the last decade, over one-third of married households receiving  income from pensions opted not to receive a spousal survivor benefit. Over the same period, the proportion of women  who are expected to receive benefits based exclusively on marriage— known as spouse-only benefits—is projected to decline from 8 to 2   At the same time, the proportion of women who are expected  percent.to receive benefits based on both work history and marriage—known as  dually-entitled/spouse benefits—is projected to decrease from 15 to 8  percent. Current Trends Suggest a Growing Proportion of the Elderly Will Be at Risk of Living in Poverty During Retirement

As the population that is ineligible for spousal and survivor benefits based  on marital history—i.e., those who are not married or divorced without a  marriage of at least 10 years—is projected to increase, the proportion of  people who will depend entirely on their own earnings and savings in  retirement is expected to increase as well. For many elderly, women in  particular, this shift is likely to be positive, reflecting their higher earnings  and greater capacity to save for retirement. The Shift Away from Defined Benefit Plans Also Increases the Economic Vulnerability of Elderly Spouses

The transition in private employer plan sponsorship from DB to DC plans  has increased the vulnerability of spouses due to differences in the level  of spousal protections between these retirement plans. In contrast,  under DC plans, there is generally no federal requirement to provide an  annuity option and participants do not need spousal consent to withdraw  funds from the account—either before or at retirement. Agency Comments

We provided a draft of this report to the Department of Labor, the  Department of the Treasury, and the Social Security Administration for  review and comment. Appendix I: Objectives, Scope, and Methods

To analyze trends in marriage and labor force participation and their  implications for retirement security, we examined: (1) the trends in and  status of marriage and labor force participation in the American  household; (2) how those trends have affected spousal benefits and  retirement savings behavior within households; and (3) what the  implications of these trends are for retirement security. The data in these reports draw upon Census and BLS surveys  including: the U.S. Census Bureau, Current Population Reports; the  Survey of Income and Program Participation; and the Annual Social and  Economic Supplements, Current Population Survey. Nonetheless, our analysis of nationally representative survey data had  several limitations. To identify the policy options that may address retirement security issues  under Social Security and private employer-sponsored plans, we  reviewed past GAO reports and interviewed experts.
Why GAO Did This Study

Marriage has historically helped protect the financial health of couples and surviving spouses in old age. Based on their marriage, and independent of their own work history, spouses may receive retirement and survivor income through Social Security and some employer-sponsored pension plans. Many of the federal requirements governing these benefits were developed at a time when family structures, work patterns, and pensions were very different from what they are today. In recent decades, marriage has become less common, more households have two earners rather than one, and many employers have shifted from DB plans to DC plans. In light of these trends, GAO was asked to examine the issue of marriage and retirement security. Specifically, GAO examined: (1) the trends in and status of marriage and labor force participation in American households, (2) how those trends have affected spousal benefits and retirement savings behavior within households today, and (3) the implications of these trends for future retirement security. GAO analyzed nationally representative survey data including the Survey of Consumer Finances, the Survey of Income and Program Participation, and the Current Population Survey (CPS); conducted a broad literature review; and interviewed agency officials and a range of experts in the area of retirement security.
GAO is making no recommendations. GAO received technical comments on a draft of this report from the Department of Labor and the Department of the Treasury, and incorporated them, as appropriate.

What GAO Found

Over the last 50 years, the composition and work patterns of the American household have changed dramatically. During this period, the proportion of unmarried and never-married individuals in the population increased steadily as couples chose to marry at later ages and live together prior to marriage. At the same time, the proportion of single-parent households more than doubled. These trends were more pronounced for individuals with lower levels of income and education and for certain racial and ethnic groups. Over the same period, labor force participation among married women nearly doubled.
Taken together, these trends have resulted in a decline in the receipt of spousal and survivor benefits and married women contributing more to household retirement savings. From 1960 through 2011, the percentage of women aged 62 and older receiving Social Security benefits based purely on their spouse's (or deceased spouse's) work record declined from 56 to 25. At the same time, the percentage of women receiving benefits based purely on their own work records rose from 39 to 48. Further, as of 2010, among married households receiving pensions, 40 percent had elected not to receive a survivor benefit. Rising labor force participation among married women enabled them to contribute more to household retirement savings. From 1992 to 2010, married women's average contributions to household retirement savings increased from 20 to 38 percent.
In the future, fewer retirees will receive spousal or survivor benefits from Social Security and private employer-sponsored pension plans, increasing vulnerabilities for some. Eligibility for Social Security spousal benefits among women is projected to decline, in part, because fewer women are expected to qualify based on marital history and more are expected to qualify for their own benefit based on their own work record. For many women, this shift will be positive, reflecting their greater earnings and capacity to save for retirement. However, women with low levels of lifetime earnings and no spouse or spousal benefit may face greater risk of poverty in old age. For private plans, the shift from defined benefit (DB) to defined contribution (DC) plans increases the vulnerability of spouses because of different federal protections for spouses under these plans. DB plans are required to offer survivor benefits, which can only be waived with spousal consent. In contrast, DC plan participants generally do not need spousal consent to withdraw funds from the account.