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Gays More Worried Than Straights About Retirement

By Terri Rimmer

As the first wave of lesbian, gay, bisexual, and transgendered (LGBT) Baby Boomers reaches age 59 ½, the first year they are eligible to make tax-free withdrawals from their retirement plans, many are taking their first real look at retirement and a good portion are not happy.

A new study shows that gays, lesbians, and the transgendered are more likely than straights to worry about how they will survive when they retire.

The study also shows that staying healthy later in life was the most frequently cited consideration in retirement among LGBT Boomers; financial concerns are second; and being old and alone was third.

“Despite their comparatively moderate concern over finances, only half (54 percent) or those in the GLBT group are saving at a rate needed to maintain their lifestyle in retirement,” said Sandra Timmerman, director of the MetLife Mature Market Institute. “Of significant interest is that 16 percent of GLBT Boomers say they spend no time at all on retirement planning.”

GLBT Boomers are just as likely as heterosexuals to expect to continue working beyond retirement age but they are more likely than the heterosexual population to say that their reasoning is financial.

The study also showed that as Baby Boomers in general mature their concerns grow.

“While it is troubling that Boomers are concerned about finances, perhaps more worrisome is that fewer are taking the steps necessary to ensure financial security in retirement,” said Timmerman.

Take Lewis, for example. He worked for a company for 20 plus years before being laid off when he got sick with AIDS (Acquired Immune Deficiency Syndrome). His live-in partner, Frank, an alcoholic hairdresser, couldn’t support the two of them eventually when Lewis’ retirement fund ran out and they both lost their house.

Or Larry, a teacher who had a home but had to give it up when his bills piled up. He and his on-again, off-again boyfriend are now living in an apartment and Larry works a second job to make ends meet since his boyfriend is not always employed.

Olivia Companies, long known for its lesbian cruise lines, has set its sights on entering the business of operating resort retirement communities for the gay and lesbian community.

The San Francisco-based travel company has looked at three parcels in Palm Springs for its first retirement community and is now looking for a real estate developer to build it.

The company anticipates strong demand for its Palm Springs resort retirement community.

The National Gay & Lesbian Task Force put the number of gay seniors at 1 million when it launched its “aging initiative” six years ago to address retirement, health care, and other issues facing older gay Americans.

The affluent segment of the gay and lesbian community is a market niche that’s generating a lot of buzz among those planning retirement communities.

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