Despite significant improvements to inclusivity in pensions, there are still some groups that struggle to engage with their retirement savings. LCP’s Jess Horner and Zoë Burdo, organisers of the O:pen industry network, explain what can still be done to address the shortfalls.
Large strides have been made to make the pensions journey more inclusive and accessible. From default option design for employees to simplifying retirement communications, these efforts have led to a general improvement in member experience.
However, for many groups, engaging with their pension savings remains an alienating and frustrating process.
Too often, the end-to-end retirement savings experience assumes a “default” member: someone in a heterosexual relationship, married with children, following a linear career path, without shared parental or adoption leave, and with access to care and family support in retirement.
That default doesn’t reflect the reality for many LGBTQ+ people. When you don’t see yourself in the system, it’s easy to feel disconnected from it.
Why LGBTQ+ inclusion matters
Pensions aren’t just numbers on a page. They’re about security, choice, and peace of mind later in life. When the process feels complex or irrelevant, people are less likely to engage, especially when they are focused on imminent financial pressures. That can lead to missed opportunities, poor decisions, or financial hardship in retirement.
For LGBTQ+ members, the challenges can be subtle but significant.
Forms might not allow you to reflect your gender identity. Phone operators may lack appropriate training to respect individual identities and histories. Communications may assume traditional family structures. Partner benefits might be poorly explained or hard to claim. Messaging may make people feel as if their partnership is “less than” a heterosexual marriage. The legal position for some members may be unclear or untested.
These aren’t just design flaws – they send signals about who the system is built for.
An opportunity for employers
For employers and trustees, inclusion in pensions isn’t a nice-to-have. It’s part of delivering value for money and meeting governance standards.
If any group is being left behind – through outdated processes or unclear communication – that’s a problem worth fixing and is often simple to address.
It’s also a chance for employers to build trust with employees. LGBTQ+ employees are more likely to engage when they feel seen, respected, and supported.
Employers are increasingly aware of how financial pressures such as home ownership impact pension choices. Higher costs of family planning and other factors mean considerations may differ for LGBTQ+ employees.
Helping trustees understand member experiences
Many trustees may not know that older LGBTQ+ individuals face heightened risks of isolation and vulnerability in retirement.
According to Stonewall, 41% of older lesbian, gay and bisexual people live alone, compared to 28% of their heterosexual counterparts. Fewer than 25% see family weekly, versus over 50% of heterosexual peers.
Many older LGBTQ+ individuals face financial challenges and are more likely to experience depression and anxiety, often rooted in lifelong discrimination and social exclusion.
While trustees can’t solve all of this, it’s essential context for member engagement. It’s important that administration teams have the knowledge and training to respect individual differences and identify vulnerabilities.
How to make things better for LGBTQ+ members
Improving the pension experience for LGBTQ+ members doesn’t mean starting from scratch. It means paying attention to where people get stuck and making thoughtful changes. Ask: Who is this not working for? And how would we know?
Some good places to start can include:
- Understanding what training administration teams receive for communicating with LGBTQ+ members.
- For trustees, consider using inclusive language in member communications and exploring additional resources to signpost.
- For employers, think about the wider benefits and options for financial wellbeing support when reviewing benefits packages.
These considerations aren’t just important during Pride season. It’s about embedding inclusion at every stage in the pensions journey.
Zoë Burdo is a partner, and Jess Horner is a senior consultant, both at LCP. They are writing as organisers of the O:pen network, which promotes and celebrates LGBTQ+ diversity and inclusion within the pensions industry.
