When we think about pensions, we often focus on the numbers. We look at what we save, what we might receive, and whether it’ll be enough. But we rarely stop to ask: why are we saving in the first place?
New research from PensionBee and The Open University suggests that this question matters more than we think.
Jonathan Lister Parsons, Chief Technology Officer of PensionBee, says: Financial planning is influenced not only by income or opportunity, but by the families we imagine for ourselves. Straight men often plan as if they’ll have children one day, while gay men are less likely to build that assumption into their saving goals.”
It found a clear pattern: gay men and straight men hold pension pots of similar size, yet their motives for saving differ in meaningful ways.
When savings goals differ
Straight men were far more likely to say they save so they can leave money to future dependents - even when they didn’t have children. Meanwhile, gay men tended to focus on securing their own financial independence.
Once men become parents or caregivers, the gap disappears. Both groups become equally motivated to provide for dependents.
The study also found that sexual orientation didn’t predict saving motives among women. This suggests that other factors, such as the gender pension gap, may play a larger role.
Why financial planning is not one-size-fits-all
What drives people to save varies widely - and that’s perfectly normal. Some save with:
- children or grandchildren in mind;
- a partner they plan to grow old with;
- ageing parents they want to support;
- chosen family rather than biological relatives; or
- their own independence as the priority.
These priorities reflect our lives and the people we care about. Social expectations about family life can shape how we plan for the future, often long before our lives take that shape.
Understanding the LGBTQ+ pensions gap
These findings sit within a wider conversation about pension inequalities that affect LGBTQ+ people.
Understanding why people save is crucial, but it’s not the only factor shaping LGBTQ+ retirement outcomes. While the study found that gay and straight men save comparable amounts, broader research points to other unique challenges:
Life expectancy assumptions - Barnett Waddingham found that 38% of transgender respondents didn’t expect to live beyond age 67. Only 5% of cisgender respondents felt the same. Many transgender respondents reported long-term health conditions.
Social isolation - LGBTQ+ people are more likely to be single, childfree or estranged from family. Almost three-quarters (73%) say they’d find a community space run by their pension provider helpful.
Confidence in care services - Stonewall research shows that three-in-five lesbian, gay and bisexual people aren’t confident that care services would meet their needs later in life.
These factors can shape how people save and plan. When pension messages focus on leaving money to kids or helping a nuclear family, it makes sense that some people feel the system isn’t designed for them.
What you can do now
Whether you’re saving for yourself, for others or for a mix of reasons, here are some steps that may help.
Check what you already have
If you’ve changed jobs, you may hold old pension pots. Bringing them together can make your savings easier to manage and may help reduce fees. You can transfer and combine your pensions with PensionBee easily online.
Jasper Martens, Chief Marketing Officer at PensionBee, says: Financial messaging that focuses on ‘leaving a legacy for the kids’ might resonate with straight savers but risks missing others entirely. True inclusion means recognising that not everyone saves for the same reasons.”
Review your State Pension forecast
Visit GOV.UK to see what you are on track to receive. This is the base for many people’s retirement income. Not sure how? Read our guide on how to check your State Pension forecast.
Name your beneficiaries
If leaving a legacy matters to you, check that your pension beneficiaries are up to date. It’s a simple step that helps make sure your savings go where you intend. Want to know more? Learn what happens to your pension when you die.
Think about your income needs
Tools like PensionBee’s Pension Calculator can help you estimate future income. Think about the lifestyle you want and whether you plan on supporting others.
Consider increasing contributions
If you can, even a small increase may make a real difference over time through compound interest, potential investment growth and tax relief.
Make sure your pension plan matches your goals
Different plans suit different needs. Review your investments to make sure they still reflect your time horizon and how you feel about risk.
Building a more inclusive pension system
Dr Peter Hegarty, Lead Author of the study, points out that social expectations about family formation influence how people think about their financial futures - often well before they become parents. The findings highlight why inclusive financial education and communication matter.
The industry has work to do. Providers need to recognise diverse family structures and goals. They also need to train professionals to help them understand these differences. It ensures that communication engages all savers.
At PensionBee, we think it’s just as important to know why people save as it is to know how much they save. When the financial system reflects people’s real lives, everyone benefits.
Your future, your way
Retirement planning is personal. Your goals may differ from those of your friends, colleagues or family members - and that’s how it should be.
What matters is that you know your priorities and build a pension that supports them. No matter if you’re saving for independence, a legacy, security, or all three, taking control today can help you create the future you desire.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
