Employers and pension providers are being urged to better support LGBTQ workers as they approach retirement, with new research highlighting a widespread fear of loneliness and a strong desire for community in later life.
A study by consultancy Barnett Waddingham to mark Pride month, in June, found that LGBTQ individuals are almost twice as likely as their straight peers to hope for meaningful community connections in retirement.
Despite this, traditional retirement planning tends to focus narrowly on finances, overlooking the social and emotional needs of those who are more likely to be single, childfree or estranged from family.
“LGBTQ people are more likely to be single, childfree, or even cut off from their family,” said the report. “Older people are more likely to have been seriously affected by early mortality of friends and chosen family due to the AIDS epidemic in the 80s.”
It added that “‘[a]s a result, the prospect of community in retirement can provide stability and safety, and mitigate the risk of isolation and loneliness.
More than seven in ten LGBTQ respondents said they would find it helpful if their pension provider offered a community focused on socialising. Only 8% said they would avoid engaging with such a community. Yet few schemes currently offer anything beyond basic financial products.
Strong Appetite for Guidance
The findings also point to a striking willingness among LGBTQ people to engage with retirement advice, with 93% saying they would actively seek support. Notably, they are 35% more likely than non-LGBTQ people to prefer receiving guidance via online chat or video, suggesting a desire for greater privacy and psychological safety.
“LGBTQ people are crying out for guidance and advice around retirement, and are more open to receiving it than their straight counterparts,” noted the report.
“But there’s also a higher preference for online over in-person support. This may be due to a need for both physical and psychological safety, and a desire not to be judged in an in-person situation.”
But around 30% of LGBTQ respondents said they would not turn to their employer, government or financial adviser for help, revealing a trust gap that employers may need to bridge.
Trans Staff Face Unique Retirement Pressures
The research also uncovered disparities in experiences among trans employees. While 50% of trans respondents have a defined benefit (DB) pension – compared to 30% of cis workers – many reported serious concerns about longevity.
More than one in three trans people aged 45–54 do not expect to live beyond 67, the projected state pension age. This figure is nearly eight times higher than for their cis peers, and may reflect the fact that 70% of trans people aged 45–64 live with a long-term health condition.
Despite this, 79% of trans employees said they felt confident they would retire with a comfortable income. That’s a level higher than the LGBTQ average (64%) and the UK population overall (58%).
Experts say this may be linked to a higher concentration of trans employees in public sector roles, which typically offer more generous pension schemes.
What Employers Can Do
The findings carry important implications for employers looking to support the full wellbeing of LGBTQ staff as they age.
The report calls on providers and employers alike to embed community-building opportunities into pension products, offer safe and inclusive advice channels and recognise the specific vulnerabilities faced by LGBTQ and especially trans individuals.
With an ageing workforce and a rising number of openly LGBTQ employees, experts say the need for inclusive, holistic retirement planning has never been clearer.