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STUDY: LGBTs Better Prepared For Retirement, Or At Least They Think They Are

A survey sponsored by Wells Fargo & Co. indicates roughly 61% of LGBT investors expect to have saved enough by the time they retire to live the rest of their lives in their desired lifestyle. That compares to 53% for the general population.Wells Fargo We must be a pretty optimistic bunch!

What’s more, only 36% of gay respondents thought they’d be working in their Golden Years.

Okay, now we’re just being delusional.

“The confidence level is built into the fact that they have more discretionary spending and a higher ability to aggressively save, as well as a lower level of debt than the average American,” said Kyle Young, whose team oversees more than $100 million in assets for about some LGBT households.

But is that confidence overconfidence?

Sure, there’s that idea that gays make more money. And, yes, some of us are doing well and don’t cave kids to worry about. But misfortune and financial ruin can hit any of us at any time. And, let’s face it, plenty of LGBTs don’t have an inheritance to cash in on.

But there’s some meat to this study: LGBT respondents have saved, on average, $150,000, or 17%, of the $900,000 they think they’ll need. Most Americans has saved about 13% of their nest egg.

So we have more invested in retirement—but less protections when the time come.  “Many retirement benefits— from Social Security to pensions—still do not have inheritance rights for partners who are not recognized on the federal level as spouses,” says Young.

Still think marriage is just about love?

[Source: Investment News]

photo by: Tax Credits
By:           Dan Avery
On:           May 31, 2012
Tagged: , , , ,
  • 5 Comments
    • SteveC
      SteveC

      This makes sense.

      I would imagine that a far higher percentage of LGBT people are not encumbered with cash-drains (ie children) than are straight people.

      May 31, 2012 at 9:45 am · @ReplyReply to this comment ·
    • 1equalityUSA
      1equalityUSA

      From the cradle to the grave LGBT pays more to exist in the United States of America. If we weren’t saddled with additional cost of living due to discrimination, that money could be used, set aside for retirement. When we finally do win equality, the money saved should be put in a retirement account. The additional costs to put someone on our insurance, the Federal tax savings, the gym membership that only recognizes hetero-families, the costs of lawyers to make financial arrangements to protect our spouses, the loss of Social Security, etc. the nickel and dime-ing of our community is loathsomely discriminatory. I’d estimate that nearly $8,000.00 annually is lost to discrimination. When we finally, legally attain equality, we should set 8K aside annually for our golden years. Taxation without representation is tyranny.

      May 31, 2012 at 11:04 am · @ReplyReply to this comment ·
    • xando
      xando

      oh please. we are just as capable of going into debt as anyone else. Maybe kids aren’t the norm for gay people but more and more are starting to become parents. I know a lot of people whom are in a lot of debt because they have to have all the goodies and toys others have..not to mention shares on Fire Island and the eight dozen event weekends happening around the country every year that everyone seems to have to have to do. All that costs money and we’re not all Millionaires so most of it goes right on the CC’s

      May 31, 2012 at 3:55 pm · @ReplyReply to this comment ·
    • Daez
      Daez

      Many gay and lesbian people have no long term safety nets other than their investment accounts, so those accounts need to be larger. That being said, a medical emergency can wipe out a great deal of an investment account pretty quickly.

      The majority of straight people have a built in safety net in the form of children.

      May 31, 2012 at 3:56 pm · @ReplyReply to this comment ·
    • UsualPlayers
      UsualPlayers

      Exactly what others are saying. Also this is a bit hard to believe given the data on poverty levels in the LGBT communities.

      May 31, 2012 at 10:12 pm · @ReplyReply to this comment ·

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