This paper quantifies why households save and work using a life-cycle model that incorporates
wage risk, endogenous labor supply of both spouses, marital transitions, health, medical expenses,
mortality, and bequest motives at the death of the first and last household member. We estimate it
using PSID and HRS data and conduct counterfactuals to assess the quantitative role of individual
mechanisms. Precautionary saving against wage risk is smaller than in models that abstract from
labor supply and within-household insurance. Bequest motives and medical expenses remain
important drivers of wealth, while marriage and divorce generate large but offsetting effects
across household types.