Elders within the LGBTI community are having to pay an average 20% retirement ‘premium’ that straight people do not have to pay.
The revelation that British LGBTIs are paying 20% more for their retirement to avoid leaving their friends and community behind has been uncovered by Equality Wealth Management. The new LGBTI company, which was first launched and piloted in Hong Kong and now covers the UK and Ireland, has been researching why LGBTI people are so unprepared for retirement.
Paul Thompson, Chairman of Equality Wealth and Founder of LGBT Capital, said: “LGBTI people often want or need to retire to more expensive cities so they are not cut off from friends, the community and vital services. Most people haven’t thought about this ‘LGBT retirement premium.’ Many LGBTIs do not plan adequately for retirement. So this extra cost is a ticking time-bomb for thousands of us.”
Just last week it was announced that the UK’s first ever international specialist wealth management service for the LGBTI market had been launched by Equality Wealth and St James’s Place Wealth Management.
The launch of the service is in response to an increasing need for specialist financial advice within the LGBTI community. The service has partnered with financial advisers who understand the particular needs of the community with products and services that have been screened.
Structured as an Accreditation Programme for LGBTI specialist financial advisers, Equality Wealth connects to advice and services by introducing specially trained St James’s Place Partner Advisers with expertise in a number of key areas including retirement planning and saving, insurance and wealth protection.
According to the Equality Wealth, the extra cost of living in the most popular cities for British LGBTI elders is as follows:
Therefore, the average ‘LGBT retirement premium’ is estimated to be 20% above the national average for cities.
Thompson said: “This is a conservative estimate. It would be even higher if London was included in the average.”
Equality Wealth said that the problem is made worse because LGBTIs aren’t preparing for retirement and that traditional financial advisers don’t understand their requirements.