Mainstream financial advice can have the tendency to focus on a cisgender and heteronormative, married audience. But a one-size-fits-all approach to retirement doesn’t really exist. We all have different lives, experiences, needs, and future plans.
Saving for retirement is generally the same for many, but there are personal and financial factors that affect LGBTQ+ individuals and families a little differently, such as job security, different family structures, possible higher healthcare costs, legal concerns, estate planning, and many others.
Don’t worry. This article won’t be all “doom and gloom“ about the future of your financial situation. Instead, I want to raise your awareness about what to expect as you plan and save for your later years, and show you how to overcome them so you can thrive to the fullest in your retired life.
So, how exactly does retirement look different for LGBTQ+ folks?
Wage Gaps, Job Insecurity, and Discrimination Add Up
In order to save money, you need to make money. Saving for retirement can be pretty difficult without a stable income to do so – something that is difficult to obtain for many queer and trans people facing discrimination in the workplace.
Even with the federal workplace protections put in place by the Supreme Court in 2020, queer and trans folks still face discrimination and often lose access to jobs because of their sexual orientation or gender identity. For instance, 46% of LGBTQ+ employees say they’ve experienced unfair treatment at their jobs, and 34% have left a job due to mistreatment by their employer, according to a recent study by the Center for American Progress.
Additionally, the Human Rights Campaign (HRC) Foundation reported that LGBTQ+ workers earn 90 cents for every dollar a non-LGBTQ+ worker earns. This wage gap is even wider for LGBTQ+ people of color, transgender women and men, and nonbinary individuals.
These circumstances can easily create a slow domino effect over the course of someone’s life, leading to lower lifetime earnings and less savings.
How to get ahead: Tap into resources for LGBTQ+ folks to find supportive work environments, discover job openings, and address workplace challenges.
Resources to consider:
- HRC’s ist of LGTBQ+-friendly employers for LGBTQ+ workers to help find companies to apply to that support LGBTQ+ equality.
- LGBTQ+ Career Network, Out In Tech, TransWork, and DiversityJobs to connect with inclusive employers and find job opportunities.
- National Employment Lawyers Association (NELA) to find an employment lawyer to work with when faced with discrimination at work.
Possible Higher Healthcare Costs Need To Be Considered
Healthcare can be a source of anxiety for a lot of LGBTQ+ people, especially as we get older. It’s no surprise that many are faced with general health insurance discrimination.
Transgender and nonbinary folks have a unique set of financial challenges when funding the costs of gender-affirming care and getting insurance to cover it. The Center for American Progress found that 30% of transgender and nonbinary individuals experienced at least one form of denial by a health insurance company.
Specifically, 28% were denied coverage for gender-affirming hormone therapy, and 22% were denied coverage for gender-affirming surgery (which can run as high as $50,000 without insurance). These rates were even higher among transgender or nonbinary people of color.
While this raises the costs of living for LGBTQ+ folks in the years they are saving for retirement and may cause them to save less, this type of discrimination may continue to follow them throughout their life. Trans folks may need ongoing access to gender-affirming care, which isn’t always covered by Medicare or even private insurance.
How to get ahead: Budget not just for standard medical expenses, but also extra out-of-pocket costs for affirming care, and maybe even travel to access LGBTQ+-friendly providers.
Resources to consider:
- Patient Advocate Foundation provides personalized assistance to LGBTQ+ individuals facing challenges with insurance denials, medical debt, and access to care.
- FAIR Health to understand healthcare costs and coverage.
- Healthcare.gov to compare plans, check for subsidies, and enroll in coverage.
- Health Savings Accounts (HSAs) to help save for healthcare costs in retirement.
