Retirement Planning Looks Different for LGBTQ+ Couples. Here's Why.

Every couple has a unique story that shapes their financial landscape, and LGBTQ+ couples bring their own resilience and adaptability to the planning process.

From fighting for marriage equality to navigating diverse legal scenarios, LGBTQ+ couples have developed resourcefulness, which can be a significant advantage in planning for their financial futures. Here’s why retirement planning for LGBTQ+ couples may look different and some tailored advice to help this community thrive.

Retirement Income Planning is Essential

For years, the lack of legal recognition for same-sex marriages created financial challenges for LGBTQ+ couples, limiting access to certain benefits. However, since 2015, all 50 states in the U.S. legally recognize same-sex marriages, allowing LGBTQ+ couples to share benefits such as Social Security and spousal IRAs. This legal progress opens valuable financial opportunities that play a key role in retirement planning.

The Importance of Chosen Family

According to the U.S. Census Bureau, only 15% of same-sex couples have children at home. This poses a unique consideration, as adult children often serve as primary caregivers for aging parents. For LGBTQ+ couples, retirement plans may lean on chosen families—support networks of close friends or extended family that redefine traditional family roles. These chosen families play a significant role in planning for future care and support.

Unique Healthcare Needs

Retirement planning for LGBTQ+ couples also requires a focus on healthcare. LGBTQ+ individuals may face health disparities linked to societal stigma and discrimination. Fortunately, healthcare providers are becoming increasingly inclusive, and LGBTQ+ healthcare rights are expanding. However, these factors emphasize the need for robust health planning to address unique considerations in retirement.

The Need for a Comprehensive Estate Plan

Estate planning may be different for LGBTQ+ couples, especially those who are unmarried or live in countries without marriage equality. Because traditional inheritance rights are not automatic without marriage, a clearly defined estate plan is essential. This ensures that assets are distributed according to each person’s wishes, covering partners, friends, biological family, or chosen family members.

While retirement planning for LGBTQ+ couples may require unique approaches, these considerations are not disadvantages. They represent an opportunity to engage in more comprehensive, inclusive planning that reflects the diverse needs of LGBTQ+ couples and their families.