A new study examines the LGBTQ community’s financial experience as it relates to retirement saving.
According to MassMutual data, LGBTQ retirees and pre-retirees are more confident than the general population about retiring successfully.
Seven in 10 (71 percent) believe their retirement income will last their lifetime, compared to 65 percent of other respondents. Nearly three-quarters (74 percent) know how or already did optimize their Social Security income, whereas only 68 percent of non-LGBTQ respondents could say the same. And 68 percent of LGBTQ Americans say they have enough money to meet their retirement lifestyle goals. Just 62 percent of the general population could say the same.
LGBTQ retirement savers expressed more comfort in taking bigger risks when it comes to investing, too. Around two-thirds (65 percent) claim to have a growth- as opposed to preservation-oriented investment mix. Meanwhile, half the general population opts for the latter.
In addition, 17 percent of LGBTQ respondents say they want their retirement investments to significantly outperform the market, and only 20 percent say they are willing to accept “below average” or “low investment returns.” Within the general population, 13 percent expect above-average investment returns.
Some LGBTQ investors may want to consider scaling back, however—and they know it. More LGBTQ respondents admit they may be taking too much risk (31 percent) than investors who feel that way within the general population (22 percent).
More than four in 10 (42 percent), however, say they are likely to become more conservative as they approach retirement, whereas only 28 percent of non-LGBTQ respondents indicated as much.
“MassMutual’s study shows that many LGBTQ retirees and pre-retirees may benefit from consulting a financial advisor about their retirement investment goals, something less than half currently do, and may benefit from help leading into retirement and securing their finances through retirement,” Catherine Cannon, head of Personal Markets at MassMutual, said in a statement. “Of those respondents in our study who do work with a financial advisor, six in 10 say their advisor has encouraged them to change their investment mix and 87 percent of those folks were advised to become more conservative as they enter retirement.”
Jessa Claeys is a writer, editor and graphic designer.