LGBTQ+ retirement planning: What you need to know

June 16, 2021

Retirement is the LGBTQ+ community’s top financial concern. These steps can help guide your retirement planning.  


The top-ranked financial concern for the LGBTQ+ community is saving for retirement, according to a study by Experian.1 As a group that often doesn’t have children, many in the LGBTQ+ community must plan for taking care of themselves in their later years. And they often miss out on family support later in life, including inherited wealth.

“Planning for retirement can be especially important for LGBTQ+ people,” says Christian Tran, a Wealth Management Advisor for U.S. Bancorp Investments. “Even small steps can accelerate your savings and build your confidence when it comes to planning for retirement and making sure your needs are covered.”

Whether you’re just getting started on your retirement planning journey or you’d like to revisit your savings, here are steps to ensure you know how much to save, where to save it, and what to consider when you’re ready to tap your retirement savings.


1. Determine your financial needs in retirement

Experts suggest that you budget to spend up to 80% of your pre-retirement income during your retirement years.2 That means if, pre-retirement, you’re earning a salary of $100,000, you’ll need to budget $80,000 per year in savings and income (at a minimum) during retirement. This 80% rule is a good starting point to estimate your retirement savings goals.

Your anticipated retirement lifestyle could make the 80% figure increase or decrease. If you plan on traveling significantly or buying a second home, your savings needs might increase. However, if you plan on downsizing in retirement or working part-time, the amount you’ll need to save may decrease.


2. Set a retirement savings goal

To set a retirement savings goal, envision the life you want and assign an annual cost to each expense. From there, you can add up expenses and multiply that figure by the number of years you expect to be retired.

For example, if you estimate your annual expenses during retirement to be $45,000 and you plan on being retired for 20 years, you can set a basic savings goal of $900,000.

If that figure seems daunting, don’t sweat it. Assuming that you commit to investing money each month and it earns roughly a 10% rate of return (which is the historical rate of return for the S&P 500 through 20193), there are several ways to hit that number. For example, if you begin investing $162 per month at age 25, you could have $900,000 if you retire at age 65. If you start at 30, you’ll need to save $265 per month to achieve the same amount. And if you start at 35, the monthly figure is $437. 

With 53% of LGBTQ+ individuals reporting in the Experian survey that they struggle to maintain savings, creating a retirement savings habit early on can help you stay on track toward retirement saving. No matter how much you have to save, small savings today can help you reap the rewards of compound interest and get you closer to your retirement savings goals.


3. Don’t forget to account for Social Security during retirement

Since every paycheck has a deduction for Social Security, you’ll want to account for this income when planning your retirement savings.

To help you estimate your Social Security benefits, you can use the Social Security Administration’s online benefits calculator. The calculator will also help you see what your benefits look like if you start receiving benefits at age 62 or if you wait until age 70 to receive the maximum possible benefit.

Once you’ve estimated your benefits, you can adjust your retirement savings goals accordingly.


4. Maximize your savings

When you’ve established a savings goal, you need to decide where to put your retirement savings. The most common options are workplace retirement plans, individual retirement plans, and taxable investment accounts.

Workplace or employer-sponsored retirement plans

If you have the option to participate in a workplace retirement plan, don’t sleep on the chance. This is doubly true if your employer offers a match of any kind on the money you put into their plan. Most 401(k)s and 403(b)s allow you to save an annual maximum of $20,500 (plus an additional $6,500 for those 50 and up)4, which means an employer plan can help you put a big annual dent in your savings goals.

Individual retirement plans

Individual retirement plans, or IRAs, are retirement accounts that receive special treatment from the IRS. Depending on your income and employment status, there are several different types of IRAs you can open, including traditional, Roth or self-employed IRAs called SEP IRAs. Money in an IRA grows tax-deferred, and withdrawals are limited until you reach retirement age. Currently, the annual contribution limit for traditional and Roth IRAs is $6,000 (plus an extra $1,000 for those 50 and up).

Knowing the difference between employer-sponsored plans like 401(k)s and IRAs can help you decide where and how much to save in each type of account available. Whatever retirement vehicle you choose to save in, the key is to make saving a habit. Automated deposits, either through payroll deductions or scheduled on payday, can help keep you on track for your goals.


5. Consider additional retirement financial expenses

Once you've set a goal and started saving, don’t forget to read up on other expenses that come along with retirement. Life insurance, long-term care insurance and Medicare are among those you'll want to keep in mind.

Life insurance can help provide for your family and heirs. If you have a policy in place before you retire, don’t forget to factor the premiums into your monthly expenses.

Long-term care insurance is specifically designed to provide for long-term medical care needs. While premiums aren’t inexpensive, they might be worthwhile to help protect your retirement savings from being spent on unforeseen medical costs.

Finally, you pay Medicare taxes right alongside your Social Security taxes every month. You’ll become eligible for healthcare coverage through Medicare when you reach age 65. This guide can help you understand the different parts of Medicare insurance and what you might expect to pay each month.


6. Ask for trusted retirement guidance along the way

Remember, retirement planning isn’t something you have to do alone.

“Having a financial professional who identifies as LGBTQ+ or who has experience working with LGBTQ+ clients can walk you through money issues, including retirement planning, that might be sensitive,” Tran says. “Building a relationship with a trusted advisor who understands your financial circumstances also creates one less barrier between you and your goals.”

Wherever you are in your retirement planning process, there are active steps you can take to take control of your finances today. The sooner you begin, the longer you have to save.


Learn how we can help you plan and save for retirement.

Related content

Commonly asked questions about receiving Social Security benefits

The connection between your health and financial well-being

5 financial goals for the new year

Investment strategies by age

Do your investments match your financial goals?

Allowance basics for parents and kids

Friction: How it can help achieve money goals

6 pandemic money habits to keep for the long term

How I did it: My house remodel

Your guide to breaking the rental cycle

4 ways to free up your budget (and your life) with a smaller home

How to build wealth at any age

Retirement planning in the gig economy

7 diversification strategies for your investment portfolio

Understanding yield vs. return

4 major asset classes explained

A beginner's guide to investing

Retirement quiz: How ready are you?

How having savings gives you peace of mind

Dear Money Mentor: How do I set and track financial goals?

Money management guide to financial independence

Buying or leasing? Questions to ask before signing a contract

Home buying myths: Realities of owning a home

How I did it: Turned my side hustle into a full-time job

3 types of insurance you shouldn’t ignore

How to start investing to build wealth

IRA vs. 401(k): What's the difference?

What military service taught me about money management

What is Medicare? Understanding your coverage options

5 steps to take before transitioning your business

7 beneficiary designation mistakes to avoid

Year-end financial checklist

OCIO: An expanding trend in the investment industry

7 year-end tax planning tips

Should I itemize my taxes?

Rebuilding finances after a natural disaster

Tips and resources to help in the aftermath of a natural disaster

Car shopping Buying versus leasing your next vehicle

I own two electric vehicles. Here’s what I’ve learned about buying and driving EVs.

Tips for working in the gig economy

Is it time to get a shared bank account with your partner?

Money Moments: 3 tips for planning an extended leave of absence

Financial gifts can be a valuable – and fun – choice for the holidays

A guide to tax diversification in investing

Estate planning for the LGBTQ+ community

Saving vs. investing: What's the difference?

Key components of a financial plan

7 things to know about long-term care insurance

Retirement planning strategies for dual-income families

Key milestone ages as you near and start retirement

How to open and invest in a 529 plan

Your 4-step guide to financial planning

What to do when you lose your job

4 financial considerations before changing jobs

Annual insurance review checklist

Should rising interest rates change your financial priorities?

6 common money mistakes to avoid

How grandparents can contribute to college funds instead of buying gifts

U.S. Bank asks: Transitioning out of college life? What’s next?

5 times you may need a financial advisor

For today's homebuyers, time and money are everything

Here’s how to create a budget for yourself

Understanding guardianship and power of attorney in banking

How do interest rates affect investments?

Effects of inflation on investments

How to use debt to build wealth

How to prepare for healthcare costs in retirement

8 steps to choosing a health insurance plan

Is a Health Savings Account missing from your retirement plan?

How to winterize your vehicle

What type of investor are you?

Take the stress out of buying your teen a car

Financial steps to take after the death of a spouse

Retirement expectations quiz

4 steps to finding a charity to support

Estate planning documents: Living trusts vs. will vs. living will

Unexpected retirement expenses

Checklist: financial recovery after a natural disaster

What financial advice would you give your younger self?

How I kicked my online shopping habit and got my spending under control

Restaurant survey shows changing customer payment preferences

How to manage your money when you're self-employed

Personal loans first-timer's guide: 7 questions to ask

How I did it: Bought a home without a 20 percent down payment

House Hacks: How buying an investment property worked as my first home

How to set yourself up for success in your first job

How to use credit cards wisely for a vacation budget

Travel for less: Smart (not cheap) ways to spend less on your next trip

Working after retirement: Factors to consider

7 ways for pre-retirees to get ready for retirement

Multiple accounts can make it easier to follow a monthly budget

9 simple ways to save

How I did it: Learned to budget as a single mom

What’s your financial IQ? Game-night edition

How to stop living paycheck to paycheck post-pay increase

Money Moments: Tips for selling your home

Parent checklist: Preparing for college

Which is better: Combining bank accounts before marriage — or after?

Does your savings plan match your lifestyle?

Don’t underestimate the importance of balancing your checking account

Do you and your fiancé have compatible financial goals?

LGBTQ+ financial planning: 7 reasons why it matters

Reviewing your beneficiaries: A 5-step guide

What types of agency accounts are available for investors?

Retirement income planning: 4 steps to take

LGBTQ+ retirement planning: What you need to know

Using 529 plans for K-12 tuition

How to retire happy

How to protect your digital assets in your estate plan

How much money do I need to start investing?

Can fantasy football make you a better investor?

Insource or outsource? 10 considerations

Bull and bear markets: What do they mean for you?

6 tips on trust fund distributions to beneficiaries

How to track your spending patterns

How to manage your money: 6 steps to take

How to discuss money with your family

Good debt vs. bad debt: Know the difference

Avoid these 6 common mistakes investors make

4 strategies for coping with market volatility

5 questions to help you determine your investment risk tolerance

How to establish your business credit score

4 tips to help you save for retirement in your 20s

4 times to consider rebalancing your portfolio

4 reasons estate planning is important

What are alternative investments?

Unexpected cost savings may be hiding in your payment strategy

Checklist: 10 questions to ask your home inspector

5 things to avoid that can devalue your home

30-day adulting challenge: Financial wellness tasks to complete in a month

5 reasons why couples may have separate bank accounts

7 steps: How couples and single parents can prepare for child care costs

Adulting 101: How to make a budget plan

Helpful tips for safe and smart charitable giving

What you need to know about renting

How and when to ask for a raise

How can I help my student manage money?

How to save for a wedding

How to save money while helping the environment

It's possible: 7 tips for breaking the spending cycle

Money Moments: 3 smart financial strategies when caring for aging parents

Personal finance for teens can empower your child

Tips to overcome three common savings hurdles

Webinar: Uncover the cost: Wedding

Webinar: Uncover the cost: International trip

Your guide to starting a job: Resources to help along the way

It’s time for a fresh start: A new way of thinking

U.S. Bank asks: Do you know your finances?

Money Moments: 8 dos and don’ts for saving money in your 30s

Money Moments: How to manage your finances after a divorce

Real world advice: How parents are teaching their kids about money

3 awkward situations Zelle can help avoid

What’s in your emergency fund?

Webinar: Uncover the cost: Building a home

10 questions to ask when hiring a contractor

How you can take advantage of low mortgage rates

10 ways to increase your home’s curb appeal

Webinar: Uncover the cost: Home renovation

Beyond the mortgage: Other costs for homeowners

Tips for navigating a medical hardship when you’re unable to work

11 essential things to do before baby comes

Webinar: Uncover the cost: Starting a family

Preparing for adoption and IVF

How to plan and save for adoption and in vitro fertility treatment costs

Closing on a house checklist for buyers

Resources for managing financial matters after an unexpected death

What you need to know as the executor of an estate

When your spouse has passed away: A three-month financial checklist

What documents do you need after a loved one dies?

How to prepare for a natural disaster

Student checklist: Preparing for college

Webinar: Uncover the cost: College diploma

5 things to know before accepting a first job offer

How I did it: Paid off student loans

Webinar: Bank Notes: College cost comparison

From LLC to S-corp: Choosing a small business entity

7 steps to keep your personal and business finances separate

How to apply for federal student aid through the FAFSA

Be careful when taking out student loans

Your financial aid guide: What are your options?

Military homeownership: Your guide to resources, financing and more

Crypto + Homebuying: Impacts on the real estate market

Webinar: Mindset Matters: How to practice mindful spending

Private equity and the full-service administrator

Webinar: ESG for Corporations: Building an all-weather, long-lasting strategy

Common pitfalls to avoid in the equipment financing process

The secret to successful service provider integration

Rule 18f-4: An in-depth look at the derivative risk management program and value-at-risk

Rule 18f-4: The limited use exception

Rule 18f-4 overview: Regulatory framework changes for derivatives

Questions to ask before buying a car

What you should know about buying a car

CancelSave & Close Planning self-care moments that matter (and how to finance them)

How to get started creating your business plan

Talent acquisition 101: Building a small business dream team

Make your business legit

7 tips to help grow your business after launch

How to test new business ideas

Costs to consider when starting a business

How to redefine challenges with business collaboration

How to sell your business without emotions getting in the way

10 tips on how to run a successful family business

The costs of hiring a new employee

How to expand your business: Does a new location make sense?

How to build a content team

Investing in capital expenditures: What to discuss with key partners

Interval funds find growing popularity

Finance or operating lease? Deciphering the legalese of equipment finance

ESG-focused investing: A closer look at the disclosure regulation

Safeguarding the payment experience through contactless

ABCs of ARP: Answers to American Rescue Plan questions for counties

3 questions to ask your equity, quant and CTA fund administrator

Should you buy a house that’s still under construction?

COVID-19 safety recommendations: Are you ready to reopen?

Start of disclosure content

Investment and insurance products and services including annuities are:
Not a deposit ● Not FDIC insured ● May lose value ● Not bank guaranteed ● Not insured by any federal government agency.

U.S. Wealth Management – U.S. Bank | U.S. Bancorp Investments is the marketing logo for U.S. Bank and its affiliate U.S. Bancorp Investments.

The information provided represents the opinion of U.S. Bank and U.S. Bancorp Investments and is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific investment advice and should not be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation.

U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Each individual's tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.

For U.S. Bank:

U.S. Bank does not offer insurance products but may refer you to an affiliated or third party insurance provider.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.

For U.S. Bancorp Investments:

Investment and insurance products and services including annuities are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.

U.S. Bancorp Investments is registered with the Securities and Exchange Commission as both a broker-dealer and an investment adviser. To understand how brokerage and investment advisory services and fees differ, the Client Relationship Summary and Regulation Best Interest Disclosure are available for you to review.

Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License #0E24641.

Pursuant to the Securities Exchange Act of 1934, U.S. Bancorp Investments must provide clients with certain financial information. The U.S. Bancorp Investments Statement of Financial Condition is available for you to review, print and download.

The Financial Industry Regulatory Authority (FINRA) Rule 2267 provides for BrokerCheck to allow investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. To request such information, contact FINRA toll-free at 1-800‐289‐9999 or via An investor brochure describing BrokerCheck is also available through FINRA.

U.S. Bancorp Investments Order Processing Information.