How to help LGBTQ employees manage their retirement stress and plan ahead

Planning for retirement is stressful, and your LGBTQ employees have a big cause for concern when it comes to imagining their financial futures.

When compared to their straight colleagues, 39% of queer employees say they are worried they will never be able to retire and 20% feel they should save a higher median amount of their annual salary for retirement, compared to 15% of the broader population, according to a recent survey by insurance company Lincoln Financial Group.

While the pandemic has exacerbated concerns around financial insecurity, members of the LGBTQ community are harboring more deep-seated fears, according to Dr. Jack Bartel, licensed clinical psychologist with telemedicine platform, Doctor on Demand.

“A lot of LGBTQ individuals have had experiences where they had to leave a job because they weren't treated equally or they didn't feel comfortable coming out in their position and had to move on,” he says. “And so psychologically, if you're in constant fear of losing what you have, you're going to be more mindful about preparing for the worst possible option.”

Read more: 11 ways employers can take Pride in their LGBTQ employees

Those anxieties tie into greater concerns about their long-term well-being, according to Dr. Bartel. Historically, members of the LGBTQ community are significantly more likely to experience homelessness at some point in their adult life — 8% of transgender adults of diverse sexual orientation identities reported recent experiences of homelessness in the 12 months, compared to 3% of cisgender adults, according to a 2020 study by the Williams Institute. This knowledge could be behind queer employees’ tendency to save.

“Chronically high levels of stress for minority groups can be caused by a lot of factors — like poor social support, low socioeconomic status, prejudice and discrimination,” Dr. Bartel says. “When they plan ahead for their future, they really struggle.”

LGBTQ employees are taking a more proactive role in ensuring their financial future is secure: 31% of LGBTQ respondents are more likely to have increased their retirement plan contribution rate in the last year, and almost half said they followed the performance of their investments more closely, the study found.

Read more: Even the smallest change can create a welcoming environment for LGBTQ employees

Employers must acknowledge the interest this population has in financial wellness, says Sharon Scanlon, senior vice president and head of customer experience and producer solutions at Lincoln Financial. Queer employees are much more engaged in their finances and eager to adopt financial wellness practices than their straight colleagues — a fact that employers should take into consideration when contemplating whether or not to offer financial wellness platforms as part of their benefit offerings.

“Employers need to double down on financial wellness solutions that will help with employee engagement and the stressors that employees have on their plate,” Scanlon says. “It's a unique opportunity to meet every employee where they want to be met through digital tools and virtual outreach programs.”