Retirement Planning Looks Different for LGBTQ+ Couples. Here's Why.

Every couple, regardless of identity, has a distinct story, and couples’ experiences often shape their financial landscapes. For LGBTQ+ couples, their stories include exceptional resilience.

From fighting for marriage equality to navigating different legal scenarios, these experiences have instilled a sense of resourcefulness and adaptability in LGBTQ+ couples that can be a strength in planning their financial futures. Let’s think about why retirement planning for LGBTQ+ couples looks different and offer advice to help this community succeed.

Retirement Income Planning is Vital

Until recently, legal recognition for same-sex marriages was not universal, making it challenging for LGBTQ+ couples to access some financial benefits. The good news is that, as of 2015, all 50 states in the U.S. legally recognize same-sex marriages, enabling LGBTQ+ couples to access financial opportunities, such as shared Social Security benefits and spousal individual retirement accounts (IRAs).¹

They Lean on Their Chosen Family

According to the United States Census Bureau, only 15% of same-sex couples have children in their household.² Because children are often the primary caregivers for aging parents, this presents a unique consideration as LGBTQ+ couples plan for their long-term care in retirement.

Many LGBTQ+ individuals have built support networks outside their biological families. This has led to a broader definition of “family,” which often includes chosen families or close-knit friend groups. Unlike the traditional focus on biological relatives, the focus for LGBTQ+ couples may be on extended networks, which could play a significant role in their retirement plans.

They Have Unique Healthcare Needs

Retirement planning for LGBTQ+ couples also requires a keen focus on healthcare considerations. LGBTQ+ individuals often face health disparities linked to societal stigma and discrimination. However, with the ongoing expansion of LGBTQ+ healthcare rights and an increasing number of providers that are becoming more inclusive and knowledgeable, these gaps are gradually closing. Still, this gap emphasizes the need for thorough long-term health planning for LGBTQ+ couples.

They Need a Comprehensive Estate Plan

Estate planning can differ for LGBTQ+ couples compared with heterosexual couples because of their unique familial and social structures. Additionally, while legal strides have been made regarding marriage equality, not all LGBTQ+ couples choose to marry, nor do they have access to the same marriage rights globally. This may impact the automatic inheritance rights typically provided to a legal spouse.

Having a comprehensive and articulated estate plan is vital for LGBTQ+ couples to ensure that their assets are distributed according to their wishes, covering their partners, friends, biological family, or chosen family.

While the retirement planning journey for LGBTQ+ couples may look different, these differences need not be perceived as disadvantages. Instead, they are opportunities to engage with retirement planning from a more comprehensive and inclusive perspective.