There have been significant developments over recent years for the LBQ community, including formal partnerships and equal marriage, but many, especially the older section of our community, are still not open or comfortable in talking about their sexuality or same-sex partner. This can often lead to people not having access to the correct information or correct advice. This is particularly important for LBQ women when thinking about or planning for retirement. For the Transgender Community specifically, retirement planning can encounter additional complexities, especially as many trans women may have lived a secret life for many years, may be considering transitioning later in life, and certainly wish to be in a position to live as a trans women in their retirement, including in potential retirement home housing.
As LBQ people, we are often told that we have higher disposable income as many of us do not have children and are more likely to have moved to bigger cities like London or Manchester to experience a more open lifestyle. We may also have the opportunity to live our retirement dream, be it a place on the beach in the sun or a cool pad in the City. However, many of us have not planned adequately for retirement and may find the opposite to be true. Many trans women may be starting a new life later in life which can mean planning for retirement is overlooked.
Cis and trans LBQ people are not alone in not planning adequately for retirement – it’s something that much of the population prefer to ‘think about later’. As an LBQ community, we do however have some additional issues to consider. Many of us grew up in a time when we could not have imagined the open lifestyle that’s possible today. Indeed, many of the LBQ women who will retire over the next couple of decades will probably have spent a number of years ‘in the closet’ and will not have thought about an open retirement. As such, for many, retirement planning may be starting later in life and require much more attention. Additionally, now that we have achieved a lifestyle we like, the last thing we want to do is go back to living in a location where we don’t have access to a vibrant LGBT Community, with the implication that we likely wish to spend our retirement in a location with a relatively higher cost of living.
So what issues should we be thinking about as we move closer to retirement?
The first thing to consider is what you would like your retirement to be for you. Based on this goal, you can then work out what this is likely to cost and what you are likely to need to fund. The following are some considerations when thinking about retirement:
1. It’s important to think about where you wish to retire to. Many LBQ women would like to retire to a location that has a vibrant LGBT Community and it is important not to feel isolated in retirement. Such locations can potentially be more expensive and it’s worth researching the cost implications in some detail. For those thinking of retiring overseas, it’s also worth checking the legal status for LGBT persons in the location you’d like to live in.
2. Do you know when you would like to retire? LBQ women without children may be able to consider retiring earlier, though starting planning later in life will make this less achievable. In the UK, the earliest you can now take money out of your pension is at age 55, although there may be penalties in doing so. Taking advice on this would be prudent.
3. Do you know what you want to do when you retire?
4. How much will it cost you to retire to where you want and have enough money to do what you want to do? Remember to take income tax and inflation into account.
Once you have worked this out, you can review your current situation and plan how you could best be prepared for your particular retirement dream.
If this sounds interesting and you’d like to find out more, Equality Wealth has produced a free retirement guide for the LGBT Community which is available on this page: http://equality-wealth.com/london/
About Equality Wealth
Equality Wealth is proud to be the first international specialist focused on the financial planning issues and wealth generation opportunities of the LGBT community. We provide specialist information and education to help individuals identify what they need to fulfil their desired lifestyle.
We are committed to providing a safe, confidential place for LGBT individuals to discuss their financial situation and aspirations with advisers that not only understands their needs, but have specialist knowledge in areas like partner protection, LGBT retirement and property purchase.
Straight to the Specialists!
- Wealth Management & Savings: assisting Clients plan Savings & Investments around a desired life cycle.
- Wealth & Partner Protection: advising on Protection Needs which depend on legal context and possible hopes to live elsewhere later in life.
- Retirement Planning: encouraging planning towards "When, Where & How" best to retire, potentially to a more expensive location.
- Property: highlighting key Financial & Protection aspects to consider when planning a purchase, whether for a home or as an investment.
- Insurance: assisting Clients in evaluating their Insurance & Protection needs, in particular where legal protection equality is not yet secured.
- Children: helping Clients consider the important Financial & Protection issues involved when having children.
- LGBT Philanthropy: advising Clients who wish to support Charities & Projects close to their hearts.
- Finding an Adviser: if you would like to be connected to a qualified LGBT specialist adviser, click FIND ME AN ADVISER to be connected.