If you could fast forward to your retirement years, what scenario do you see?
Do you envision yourself traveling to far-flung places or taking up a new hobby? These seem like lovely projections, but many find a plan in place will help make it happen so you can live comfortably and securely.
Of course, that planning is easier said than done. In part, because the long-term budgeting required for retirement often gets pushed to the back burner for in-the-now needs and goals.
Add to that, LGBTQ+ individuals, partners and families in particular often experience challenges that can affect their finances both while looking ahead towards retirement and once they reach their golden years (according to the U.S. Census Bureau retirement age is 64 on average).
One reason for this? A wage gap among LGBTQ+ workers. According to Experian's 2018 LGBTQ Money Survey: Attitudes, Challenges and Opportunities 62% of LGBTQ+ respondents indicated they had experienced financial issues because of their sexual orientation or gender identity.
LGBTQ+ workers earn less than their cisgender, heterosexual counterparts, earning about 90 cents for every dollar, according to an analysis by the Human Rights Campaign Foundation. LGBTQ+ people of color, transgender and non-binary folks earn even less, with transgender women earning just 60 cents for every dollar the typical worker earns.
While equal rights progress has been made by the LGBTQ+ community, LGBTQ+ folks along with their partners and families may struggle to find financial guidance that addresses their particular needs. Issues such as housing discrimination when purchasing a home, credit issues following a name change, family planning expenses or healthcare costs for gender affirming surgeries or hormone therapy.
However, it’s possible to address the particular financial needs of today and still plan to have savings waiting for you in the future. Following are some tips from LGBTQ+ educators and financial planners to help tackle these concerns and effectively plan by investing — and taking action — towards the retirement you envision.