As Americans enter retirement, they can face several challenges, from maintaining financial health to adapting to a new way of life.
Those challenges are often magnified for members of the LGBTQ+ community, many of whom face financial uncertainties due to decades of wage disparities, discrimination or limited access to spousal benefits before marriage equality. Additionally, concerns about changes to health care access and inclusive elder care add layers of complexity.
Here’s a look at hurdles that older LGBTQ+ Americans face and some factors that may alleviate those challenges.
[READ: Best Retirement Destinations for LGBTQ+ Seniors]
Legal and Regulatory Concerns
The Obergfell decision by the Supreme Court in 2015 granted the right for same-sex couples to marry in every U.S. state.
That decision gave married same-sex couples the same federal benefits as heterosexual married couples. Those include Social Security survivor and spousal benefits, joint tax filing, immigration sponsorship and military spousal benefits. These couples also became eligible for employer-provided health insurance, family leave under the Family and Medical Leave Act and COBRA coverage.
However, after the 2024 presidential election, many same-sex couples are now wondering whether those rights will be rolled back.
“There are many what-ifs in planning for retirement with any couple,” said Tracey Dean, a certified financial planner at Tracey Dean Financial in Salt Lake City, in an email. For example, retirees must address unknowns like longevity, tax changes, inflation and Social Security claiming strategies.
“It’s exacerbated for same-sex couples in planning for income and long-term care in retirement as we add on the issue of the recognition of their marriage,” Dean said. “Especially for older clients who have been able to marry since June 26, 2015, nearly 10 years have passed during which they thought they were all set.”
Loss of Retirement Income
If same-sex couples’ marriage recognition is rescinded, it may eliminate retirement income such as Social Security or pension survivor benefits, potentially leaving a surviving partner financially vulnerable, Dean said.
“A married lesbian couple in Salt Lake City is relying on one spouse’s pension for retirement,” she said, citing one such example. “They worry that if their marriage is no longer recognized, the spouse without a pension may lose access to benefits, jeopardizing their ability to stay in their home.”
[READ: Your Guide to Retirement Planning.]
Concerns About Long-Term Care
Before the election raised fresh worries, LGBTQ+ seniors already faced challenges.
For example, said Dean, those without children or supportive families may find that planning for long-term care can be expensive.
“Many want to ensure they are financially covered, but the lack of familial support adds complexity to care and planning,” she said.
Jake Skelhorn, CFP and wealth advisor at Spark Wealth Advisors in Jacksonville, Florida, echoed that concern. Because many LGBTQ+ adults don’t have children, they will likely have a greater need for assistance in their later years.
“They are concerned about ending up in faith-based nursing homes, which may not be supportive of the LGBTQ+ community,” he said. “They also fear going back in the closet in fear of people in the nursing homes or long-term care facilities not accepting them.”
[Related:Should Retirees Still Plan for 95?]
Why Location Matters
Some parts of the U.S. may be more receptive than others to assisting older adults from the LGBTQ+ community.
“We are worried about backlash from the election results and more outward discrimination we will endure,” said Laura LaTourette, CFP and founder of Family Wealth Management Group in Dahlonega, Georgia, in an email.
“Microaggression for many has already started, and they fear there will be no safe place as they age,” she said.
Like Skelhorn, LaTourette cited concerns that religious-based nonprofits that provide community services or operate assisted-living facilities may not welcome LGBTQ+ seniors.
How Workplace Discrimination Affects Retirement
According to an August report from the Williams Institute at the University of California, 47% of LGBTQ+ workers say they have experienced discrimination or harassment at work at some point in their lives.
“On average, the queer community has lower income and wealth due to the impacts of discrimination,” said H.L. Norwich, a CFP and attorney at Hughes Legacy Law in Alexandria, Virginia, in an email.
Workplace harassment and discrimination are among the factors resulting in lower income for LGBTQ+ retirees versus their heterosexual counterparts.
An analysis by the Human Rights Campaign found that LGBTQ+ workers earn 90 cents for every dollar earned on average by typical workers. LGBTQ+ people of color, transgender women and men, and nonbinary individuals earn even less.
Glimmers of Hope
The situation isn’t necessarily bleak for all retirees in the LGBTQ+ community.
LGBTQ+ seniors who have had successful careers often saved more than the average family because they didn’t have child-related expenses, Norwich said.
“These community members are well-positioned to help out the less fortunate ones through charitable giving and bequests,” they added.
When it comes to the future of same-sex marriage and all its financial planning advantages, Skelhorn remains upbeat.
“I’m optimistic that we are in too deep for (same-sex marriage) to be completely overturned,” he said. “There is a plethora of legal challenges that would have to be addressed if currently married couples were to become single in the eyes of the law suddenly.”
Those legalities include joint investment and bank accounts, Social Security, estate and inheritance issues and community property, among others.
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5 Top Retirement Considerations for LGBTQ+ Seniors originally appeared on usnews.com
