Sexual orientation and household savings: do homosexual couples save more?

We analyze how sexual orientation is related to household savings using 2000 US Census data, and find that gay and lesbian couples own more retirement income than do heterosexual ones, while cohabiting heterosexuals save more than their married counterparts. In a household savings model, we interpret this homosexual-specific differential as due to the extremely low fertility of same-sex households, in addition to the precautionary motives driving cohabiting couples to save more than married ones. Evidence from homeowners’ ratio of mortgage payments to house value exhibits the same pattern of savings differentials by sexual orientation and cohabiting status.