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LGBTQ+ Consumers Have High Retirement Savings Goals: Survey

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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. 

As a result, employer-sponsored retirement plans can become more than an accumulation vehicle; they can provide a stream of income in retirement, so that participants have the potential to receive income regularly for the rest of their lives. 

The survey found that 54% of LGBTQ+ savers are interested in an in-plan income solution, versus 46% of the broader population. 

“In-plan protected income products can serve as a powerful protection tool during periods of volatility, while still benefiting savers when the market goes up,” Ohl said. 

Besides their financial concerns, community members continue to face discrimination in the workplace and in housing, two recent studies found.

Stress Hits Wallets

Forty-seven percent of LGBTQ+ respondents said they had felt significant stress over the last six months, compared with 36% of the broader population. 

Moreover, 69% said stress negatively affects their ability to manage or improve their personal finances, versus 60% of the general population. 

How to manage financial stress created by the pandemic? Ohl recommends that all savers get an accurate snapshot of where they are now. 

A good place to start, she said, is with a financial wellness program, which many employers offer to their employees. Savers can use these tools to create a personalized action plan and improve their financial well-being and achieve their goals. 

“By better understanding our customers and the communities we serve, we can focus on driving innovation in our customer experience, products and service, to ensure we are helping more people achieve financial security,” she said.