New research suggests that LGBTQ+ employees are approaching retirement with different expectations, concerns and support needs compared with their heterosexual peers, raising important questions for employers, pension providers and workplace wellbeing strategies.
The study, from services consultancy Barnett Waddingham, draws on responses from more than 5,000 UK employees and self-employed adults who intend to retire. Of those surveyed, 11% identified as lesbian, gay, bisexual, asexual, pansexual or queer. The findings point to a strong desire for community, high engagement with retirement planning support and unique concerns around financial security and longevity.
Researchers found that LGBTQ+ individuals are more likely to be single and less likely to have children as they approach retirement. Among those aged 55 to 64, 56% of LGBTQ+ respondents reported having a partner compared with 70% of straight respondents. Meanwhile, 46% had children compared with 62% of their heterosexual counterparts.
The Importance of Social Connection
A stronger focus on social connection emerged throughout the research, with LGBTQ+ respondents almost twice as likely to aspire to finding a community during retirement. Nearly three-quarters, 73%, said they would find a community focused on socialising and established by their pension provider helpful. Only 8% said they would avoid engaging with such a community.
According to the report, community-building initiatives could help address concerns around isolation and loneliness among older LGBTQ+ adults. Researchers noted that some individuals may be more likely to be single, childfree or separated from family networks, potentially increasing the importance of social support structures in retirement.
Retirement Planning Support
The research also highlights a strong appetite for retirement advice. Overall, 93% of LGBTQ+ respondents said they would seek guidance when planning for retirement, while just 7% said they would not.
However, the findings reveal uncertainty around where that support should come from. While most respondents were open to seeking advice, significant numbers expressed reluctance to rely on traditional sources. Around 30% said they would not seek retirement guidance from their employer or a financial adviser, while 28% would not turn to government sources and 25% would avoid online retirement planning tools.
The study also found greater interest in digital forms of support. LGBTQ+ respondents were 35% more likely than non-LGBTQ+ individuals to use online chat and video services when seeking retirement advice. Researchers suggested this preference may reflect a desire for both convenience and psychological safety when discussing financial matters.
Trans Workers Report Longevity Concerns
The report identified several notable trends among trans respondents. Half reported having access to a Defined Benefit pension scheme, compared with 30% of cisgender respondents. Researchers noted that such schemes are commonly associated with public sector occupations including teaching, healthcare and the civil service.
Access to these pension arrangements may help explain why 79% of trans respondents said they were confident about retiring with a comfortable income. That compares with 64% across the wider LGBTQ+ community and 58% across the UK population.
At the same time, concerns about health and longevity were more pronounced. Among trans people aged 45 to 54, 38% did not expect to live beyond age 67, the future State Pension Age. The equivalent figure among cisgender respondents was 5%. The research also found that 70% of trans people aged 45 to 64 reported living with a long-term health condition, compared with 25% of cis individuals.