Q: As a gay couple who isn’t married (although we have considered it), we want to make sure we’re planning for our retirement appropriately. How may our planning needs be different from the broader population?
A: Our LGBTQ+ community is resilient, strong and resourceful — all qualities that make for excellent retirement planning. Here’s a sampling of how our retirement planning needs may be different, and what we can do to stay ahead.
Every couple — regardless of identity — has a distinct story, and couples’ experiences often shape their financial landscapes. For LGBTQ+ couples approaching or living in retirement, these stories may 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 our financial futures. Let’s think about why retirement planning for LGBTQ+ couples may look different, and offer advice to help our 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+ married couples to access financial opportunities, such as shared Social Security benefits and spousal individual retirement accounts (IRAs).1
Leaning on 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 retirement plans.
Unique Healthcare Needs
Retirement planning for LGBTQ+ couples also requires a keen focus on health care considerations. LGBTQ+ individuals often face health disparities linked to societal stigma and discrimination. However, with the ongoing expansion of LGBTQ+ health care rights and an increasing number of inclusive and knowledgeable providers, these gaps are gradually closing. Still, this gap emphasizes the need for thorough long-term health planning for LGBTQ+ couples.
Needing a Comprehensive Estate Plan
Estate planning can differ for LGBTQ+ couples compared with heterosexual couples because of 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 partners, friends, biological family, or chosen family.
While the retirement planning journey for LGBTQ+ couples may look different, these differences should not be perceived as disadvantages. Instead, they are opportunities to engage with retirement planning from a more comprehensive and inclusive perspective. As always, it is recommended to speak with your own financial advisors about your unique situation, to be sure they have experience advising individuals and couples within our community.
Jeremy R. Gussick is a Certified Financial Planner™ professional affiliated with LPL Financial, the nation’s largest independent broker-dealer.* Jeremy specializes in the financial planning and retirement income needs of the LGBTQ+ community and was recently named a 2023 FIVE STAR Wealth Manager as mentioned in Philadelphia Magazine.** He is active with several LGBTQ+ organizations in the Philadelphia region, including DVLF (Delaware Valley Legacy Fund) and the Independence Business Alliance (IBA), the Philadelphia Region’s LGBT Chamber of Commerce. OutMoney appears monthly. If you have a question for Jeremy, you can contact him via email at [email protected].
Sources:
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Jeremy R. Gussick is a Registered Representative with, and securities and advisory services are offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.
*As reported by Financial Planning magazine, June 1996-2022, based on total revenues.
**Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2023 Five Star Wealth Managers.