Retirement age means you ideally get to end your career and focus on leisure and loved ones. In order to enjoy a comfortable retirement, one must properly plan, set goals, and save for expenses to stop working. LGBTQ+ individuals may face extra challenges in terms of inclusive retirement spaces, senior living communities, healthcare, and legal rights. If you’re a member of the LGBTQ+ community, it’s important to know your rights and options before retirement age to prepare better.
LGBTQ+ Estate Planning
Estate planning is crucial no matter who you are, but it may be particularly complicated for LGBTQ+ people. Not all members of the LGBTQ+ community have support and connections with their family members, so they will need to take extra steps to ensure their assets and legacy are protected. Wills and trusts will need to be specific and legally binding, especially regarding unmarried same-sex couples. Draft up a will and trust with an LGBTQ-friendly attorney. They can walk you through your rights and options to ensure your needs are met whether you’re married, single, in a domestic partnership, have children, or are child-free.
Save Early
Some members of the LGBTQ+ community may not have the social or family support that others do in retirement. For this reason, saving money as early as possible can help secure your financial freedom and ensure you’re safe and independent during retirement years. If you don’t have an active retirement savings plan, then you should research your options and get started. If you can save at least 20% of your income, then it’s a good start. You’ll want retirement-specific savings as well, such as an IRA (individual retirement account).
Social Groups
As people age, it can be harder to find social connections and ties. Careers and family life can get in the way of maintaining and creating friendships. At retirement age, seniors need to have plenty of diverse social relations to improve their mental and cognitive health. LGBTQ+ seniors may find additional challenges finding social groups that are accepting and welcoming. It may be in their best interest to seek out LGBT-specific social groups and events for retirees. LGBT retirees can find comfort and support in each other. Search online and ask in person for any senior social groups for LGBTQ+ individuals in your area. You may need to start your own in smaller communities, but you’ll likely find a lot of interested parties.
Utilize Retirement Plans
One of the most important strategies for financial security during your retirement years is to use retirement plans. Retirement plans come in many forms, but they typically involve a funding account that you and sometimes your employer contribute to, if applicable. Most funds have some tax advantages, such as the ability to contribute pre-tax or contributions being tax deductible, reducing the taxes you owe the government each year. If you are employed and your employer offers retirement plans, they will typically match your contributions to increase your savings. Even if you are self-employed or own your business, there are many retirement plan options available for independent contractors and small business owners. You can consult with a financial advisor to discuss different plan options and what may work best for your situation. LGBTQ+ people have the right to use a retirement plan just like the rest of the population.
Inclusive Senior Living Options
Many seniors move to a new community once they retire. Senior living communities are beneficial for those who want to live near similarly aged peers and enjoy community amenities. Sometimes, senior communities are a necessity when mobility or cognitive function is limited. As a member of the LGBTQ+ community, you’ll have to do some extra vetting to ensure senior communities are inclusive and accepting. They should be able to provide LGBTQ-specific healthcare needs, like hormone therapy. Nursing homes should prioritize safety for everyone in terms of contagious diseases, security issues, and harassment. You should be vetting senior communities for quality regardless, but inclusion is another very important factor to consider.
Social Security
Your sexuality or gender identity is not a factor when it comes to obtaining Social Security benefits, so it’s important to apply when you reach retirement age. Social Security benefits are retirement funds given to you by the government after you contribute a certain amount of income tax. You can claim Social Security benefits as early as age 62, but they will reduce your payments by at least 30% to account for early withdrawals. Consider waiting until full retirement age (65-70) to claim your benefits. The full retirement age will be different according to your birth year; if you were born in 1960 or later, you should claim benefits at 67.
LGBTQ+ Healthcare Directives
Not all same-sex couples are legally married; others are in domestic partnerships or simply live together. While these are all valid options for partnerships, certain laws or locations may make healthcare more challenging. LGBTQ+ people, especially older adults, may want to consider establishing healthcare directives to avoid any confusion or legal concerns. Healthcare directives are legally binding documents or instructions dictating your preferences in a healthcare environment. For example, if you are in a coma, someone will need to make decisions on your behalf; a healthcare directive, like a living trust, can help you designate who will make those decisions. If you do not wish to be revived after your heart or breathing stops, you can issue a DNR (Do-Not-Resuscitate) Order to prevent this. If you want to establish someone to make important decisions for you and your healthcare if you are unable to, you can appoint a power of attorney or medical power of attorney to select someone to do this for you. If you have concerns about who makes decisions for you, establishing healthcare directives is a smart way to go.
