Challenges for LGBT Retirees
Published in Senior Living Features
Retirement isn't easy for most couples, and it's even harder for lesbian, gay, bisexual and transgender (LGBT) people. A modest amount of planning can go a long way to providing the financial support you need.
Bias can be financially costly for members of the LBGT community. Discrimination in employment means less money to save, and same-sex couples do not have the same access to Social Security yet. This Associated Press article published in the New York Times emphasizes these unique challenges that LGBT baby boomers face:
"For many, decades of workplace discrimination impaired their earning potential. The AIDS crisis caused lasting financial and psychological damage, particularly for gay men. And legal pitfalls within Social Security, the cornerstone in any senior's financial planning, have left gay baby boomers ill-equipped for retirement."
The article also notes that some of those who spent decades fighting for their civil rights now find that they are not able to retire with dignity.
You can see why there is concern about LGBT boomers falling into poverty during retirement. Plenty of studies show that gay and lesbian couples have a lot less saved for retirement than their heterosexual counterparts. According to the Associated Press analysis, same-sex couples have median retirement savings of $66,000, 25% less than opposite-sex couples.
Married or not, LGBT baby boomers are less likely to be able to save for retirement as they face discrimination in hiring and wages. The Williams Institute finds that the wage gap between gay and heterosexual men goes as high as 32%.
Although the Social Security Administration now recognizes same-sex marriages for spousal and survivor benefits, these couples are not able to get such benefits if they live in a state that does not recognize same-sex marriage. Whether they move to there because they want to or because there is a personal or professional need, LGBT couples may have to fight for their retirement funds.
Many Americans face getting older without being able to rely on family members for assistance, especially the LGBT seniors, since the majority of them don't have spouses or children to care for them. And those who can afford to move into nursing homes sometimes find that they are not welcome.
All of us need to save more and manage our money better. If you are concerned about how being a member of the LGBT community may affect your life in retirement, you should get serious about retirement planning before you are ready to stop working. Make sure you are up to date on you Social Security benefits. You can also consult resources like the Gay Retirement Guide for help tailored to you.
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Claire Emory, CFP, CFA, RIA, owns and operates Clarity Financial Planning LLC in Arlington, Va.
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