When it comes to retirement savings, no family structure is apparently better prepared than same-sex couples without kids, who reported having $276,200 tucked away the very model of successful workplace savers.
Despite the stigma of being the most untraditional of all family types, same-sex couples with children are emerging leaders when it comes to success with their finances, according to Allianzs recent LoveFamilyMoney study.
This news comes as financial concerns and readiness for retirement remain top worries for many Americans, even as many employers are taking proactive steps by offering financial education benefits, or using automatic features in 401(k) plans to help boost retirement readiness for all workers.
As with traditional families, bringing children into the equation lowers the retirement savings rate of same-sex couples with children, who report an average of $210,700 in employee retirement savings. Other modern family types have an average of $186,000 saved.
When it comes to managing family finances, the study revealed that same-sex couple families, which combine those couples with and without kids, have more in common with traditional families than any other modern family type, says Katie Libbe, Allianz Life VP of consumer insights, of the studys bottom-line findings.
One significant difference was 89% of surveyed same-sex couple families with kids described their family as being able to adapt to change, when it came to finances, if needed. That makes them the most flexible families among all the surveyed groups. Another key statistic was 60% of same-sex couple families with kids combine their finances, while 80% of traditional families tend to fully combine finances as their managing approach.
While, according to the study, same-sex couples would be more apt to use financial education tools, employers can offer a variety of financial wellness programs to keep employees feeling secure.
Also See:
According to a 2013 Aon Hewitt study, 80% of employers said they would likely focus on the financial well-being of their employees. A similar study also conducted by Aon Hewitt just a year earlier found that only 32% of employers planned to make this a priority.
The study overall showed that same-sex couple families with or without kids are keeping up in terms of the financial landscape with families that may be seen as more traditional.
The financial services industry should take note that same-sex couple families are the most financially prepared type of modern family, Libbe adds.
Same-sex couple families with kids and traditional families report having lower levels of debt than other modern families. An equal proportion of same-sex couple families with kids (22 percent) reported having no debt (not including mortgage) as traditional families. In contrast, only 16 percent of other modern family types reported having no debt.
The study included:
- Multi-Generational Families Three or more generations living in the same household.
- Single Parent Families One unmarried adult with at least one child younger than 18.
- Same-Sex Couple Families Married or unmarried couples living together with a member of the same gender (with and without children).
- Same-Sex Couple Families with Children 35% of the same-sex couples interviewed had at least one child in the household.
- Blended Families Parents who are married or living together with a stepchild and/or child from a previous relationship.
- Older Parent with Young Children Families Parents age 40+ with at least one child younger than 5 in the household.
- Boomerang Families Parents with an adult child (21-35) who left and later returned to rejoin the family.
