What You Need to Know
- LGBTQ+ respondents feel they should save 20% of their salary for retirement, vs. 15% for the broader population, Lincoln Financial Group found.
- They are also more likely to have increased their retirement plan contribution rate in the last year.
- Fifty-four percent of LGBTQ+ savers are interested in an in-plan income solution, vs. 46% of the broader population.
Members of the LGBTQ+ community feel that they should save a median 20% of their annual salary for retirement, compared with 15% for the broader population, according to a survey released this week by Lincoln Financial Group.
LGBTQ+ respondents are also more likely to have increased their retirement plan contribution rate in the last year, and 45% said they had followed their investments’ performance more closely last year.
“Our research shows that LGBTQ+ consumers are actively engaged in retirement planning and in managing their finances overall,” Jamie Ohl, president of workplace solutions, operations and brand for Lincoln Financial Group, said in a statement.
“And despite the market volatility and uncertainties all Americans have faced this past year, this community has not put their financial futures on hold, instead focusing on long-term goals to achieve the retirement they envision.”
Lincoln Financial conducted an online survey from Feb. 19 to March 18 with a total of 2,535 full-time workers: 2,030 retirement plan participants and 505 nonparticipants.
Employers Can Help
Despite their enhanced focus on retirement planning, Lincoln Financial’s research found that LGBTQ+ consumers still have financial concerns. Fifty-three percent reported worrying that they would never be able to retire, compared with 39% of the general population.
Lincoln Financial said that sentiment may be driven by LGBTQ+ respondents’ focus on saving a higher percentage of their annual salary than the broader population to achieve this milestone. It could also mean that the community needs a better understanding of what is required to feel more confident about achieving financial security.
Employers could play a more active role as well, it said.
By way of example, Lincoln Financial pointed to a provision of the Secure Act that made it easier for plan sponsors to provide a retirement plan design that can generate guaranteed income for plan participants in retirement.