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This Is What To Know About The Retirement Crisis For LGBTQ+ Employees (And How To Fix It)

This Is What To Know About The Retirement Crisis For LGBTQ+ Employees (And How To Fix It)

by | Jun 2, 2025 | For Employees

Retirement security is a growing concern for many Americans, with an increasing number of older workers staying in the workforce longer due to financial insecurity. However, for LGBTQ+ employees, the challenges are even greater. Systemic barriers such as wage disparities, workplace discrimination, limited access to pensions and healthcare inequities have created a retirement crisis for LGBTQ+ employees.

As we recognize Pride Month 2025, it is essential to reflect not only on the progress made in LGBTQ+ rights but also on the financial inequalities that persist. Marriage equality and workplace protections have improved over time. But LGBTQ+ workers still face unique obstacles to achieving a secure retirement.

Understanding the LGBTQ+ Retirement Crisis: Financial Disparities in Retirement

Many LGBTQ+ employees struggle with financial insecurity, particularly when it comes to preparing for retirement. A significant portion of older LGBTQ+ adults earn less and have more difficulty paying their bills compared to their non-LGBTQ+ counterparts. This financial instability is reflected in their savings habits. A 2023 survey found that over half of LGBTQ+ respondents had less than $5,000 in savings and 20% reported having no savings at all. Additionally, LGBTQ+ individuals are less likely to have access to traditional pensions, which have historically provided greater financial security for retirees.

For many in the LGBTQ+ community, these financial disparities result in a delayed or uncertain retirement. Among single LGBTQ+ older adults, 50% believe they will have to work beyond the traditional retirement age, compared to just 27% of single non-LGBTQ+ individuals. Even same-sex partnered couples experience a retirement income gap, with studies showing they have 38% less income from retirement savings than heterosexual couples.

Workplace Discrimination and Income Inequality

One of the most persistent obstacles to retirement security for LGBTQ+ employees is workplace discrimination. While legal protections have improved over the years, there is still no federal law explicitly safeguarding LGBTQ+ workers from job discrimination. 18 states still allow employees to be fired simply for being LGBTQ+. This lack of protection contributes to financial insecurity. 53% of LGBTQ+ employees reporting that discrimination has negatively impacted their work environment.

Transgender individuals, in particular, face significant employment challenges, with an unemployment rate three times higher than the national average. Even among those who do find employment, income disparities persist. While gay men’s earnings are gradually reaching parity with straight men in comparable jobs, lesbian women still earn less than their heterosexual counterparts, limiting their ability to save and take advantage of employer-matching retirement benefits. Additionally, a study analyzing Federal Reserve data found that same-sex couples have lower median retirement savings—about $66,000 compared to $88,000 for different-sex married couples.

Health Disparities and Lack of Social Support

Beyond financial struggles, LGBTQ+ retirees often face challenges related to healthcare and caregiving. This further impacts their ability to retire securely. Studies have shown that LGBTQ+ individuals experience higher rates of substance abuse, smoking, depression, and unhealthy weight control compared to the general population. Many also avoid seeking healthcare due to fear of discrimination, leading to undiagnosed and untreated chronic conditions that become costly over time.

These concerns are especially pronounced among LGBTQ+ elders. Research indicates that 43% of older LGBTQ+ singles and 40% of those in their 60s to 70s have not disclosed their sexual orientation to their healthcare providers, making it harder to receive appropriate medical care. Additionally, 65% of transgender adults worry about limited access to healthcare providers as they age.

Another major issue facing LGBTQ+ older adults is the lack of traditional family caregiving support. LGBTQ+ individuals are three to four times less likely to have children than their non-LGBTQ+ peers. This means they often lack the familial support that many older Americans rely on for assistance with aging-related needs. While many LGBTQ+ individuals cultivate strong “families of choice” with close friends and community members, these support networks often consist of people in the same age group, limiting their ability to provide long-term caregiving assistance. This lack of support increases the need for expensive professional caregiving services, further straining financial resources in retirement.

How Employers Can Help Close the Gap

1. Expanding Access to Retirement Benefits
One of the most effective ways employers can help LGBTQ+ workers in this retirement crisis is by expanding access to retirement benefits. Companies should implement automatic enrollment in 401(k) plans with employer-matching contributions. This ensures that all employees have the opportunity to build long-term savings. Additionally, spousal benefits should explicitly include same-sex partners, allowing LGBTQ+ employees to access the same financial protections as their heterosexual colleagues.

Employers can also play a role in increasing financial literacy among LGBTQ+ employees by offering educational programs that focus on retirement planning, debt management and investment strategies.

2. Addressing Workplace Discrimination and Pay Inequality
To close the wage gap and improve financial security for LGBTQ+ employees, employers must commit to creating inclusive and equitable workplaces. This includes implementing comprehensive anti-discrimination policies, promoting salary transparency and ensuring equal pay for equal work.

Offering inclusive healthcare benefits such as gender-affirming care and mental health resources can also help reduce the financial burden on LGBTQ+ employees. By addressing the systemic barriers that contribute to lower earnings and higher medical costs, employers can create a fairer and more supportive work environment.

3. Supporting LGBTQ+ Employees in Long-Term Care Planning
Given the caregiving challenges many LGBTQ+ retirees face, employers should offer elder care resources and caregiving benefits to help employees plan for the future. Encouraging LGBTQ+ workers to build alternative aging support networks such as younger colleagues, extended family members and community organizations can also help offset the lack of traditional family caregiver.

Looking for a financial wellness solution? Try Best Money Moves!

The retirement crisis for LGBTQ+ employees is a serious but solvable issue. By recognizing the unique financial challenges LGBTQ+ workers face and taking proactive steps to address them, employers can help ensure a more equitable future for all employees. Expanding retirement benefits, enforcing workplace protections, and providing access to inclusive healthcare and caregiving support are all critical steps in closing the gap.

As we celebrate Pride Month 2025, let’s not just reflect on progress but actively work toward a future where every American, regardless of sexual orientation or gender identity, can retire with dignity and financial security. 

The Truth About Employee Financial Wellness in 2025

The Truth About Employee Financial Wellness in 2025

by | May 21, 2025 | For Employers

Ongoing economic factors are putting a heavy strain on American financial stability. Recent reports paint a concerning picture of employee financial wellness, creating challenges in the workplace that may affect productivity, retention and overall satisfaction.

According to Mercer’s Financial wellbeing Landscape report, 43% of employers say employee financial wellness is a point of concern, up 14 points since 2022. With employers and employees increasingly keyed into this issue, now is the time to turn your attention to employee financial well-being.

Here are a few key highlights about the state of employee financial wellness in 2025. (Plus, what you can do to help your team in tough times.)

The current state of employee financial wellness

Despite their best efforts, many workers struggle to stay afloat financially. Those with one salary often look to side hustles or gig work to supplement their income, but lack the necessary savings to feel secure.

Based on the Mercer report, half of Americans have saved less than what they needed for financial security. This widespread lack of savings across all demographics threatens workers’ retirement hopes. In addition, 27% of adults report having no emergency savings whatsoever, leaving them vulnerable to unpredictable expenses.

As a result, 43% of adults in 2025 would need to borrow money to cover an unexpected $1,000 expense, according to May 2024 polling. For these employees, the margin for error is impossibly slim, leaving no room for life changing events.

The situation for employees is just as dire when it comes to retirement prospects. Among current retirees, 36% have faced unexpected spending needs during retirement, which shows how even careful planning can fall short. Additionally, 31% of retirees admit their spending is higher than they can comfortably afford.
55% of retirees cite fear of running out of money as a major reason they try not to spend down their assets. This approach to retirement spending reveals a lack of financial security, even among those who have successfully saved for retirement.

The role employers play in employee financial wellness

Financial wellness programs are some of the strongest means of defense for safeguarding your workforce from financial insecurity. These programs have evolved significantly, moving beyond basic retirement plans to offering comprehensive solutions addressing immediate and long-term financial challenges.

Without a solid benefits package, employees are more susceptible to economic forces outside of their control. This vulnerability doesn’t just affect workers’ personal lives — it directly impacts workplace performance, with financially stressed employees reporting higher levels of distraction, absenteeism, and decreased productivity.

Forward-thinking employers implement different approaches to support employee financial wellness:

  • On-demand pay options provide flexibility for employees to access earned wages before traditional pay periods, reducing reliance on high-interest loans or credit cards. 
  • Financial education platforms provide personalized guidance to meet employees where they are in their financial journey. These platforms often include a plethora of resources and tools to develop a stronger sense of financial wellbeing.
  • Student loan assistance programs acknowledge the debt burden affecting productivity and long-term financial planning for many employees.
  • Dedicated emergency savings accounts with employer matching contributions, helping build financial resilience against unexpected expenses. Employers are increasingly working with banks, credit unions and third-party vendors to encourage employees to save for emergencies.
  • Holistic financial planning services that integrate retirement planning with day-to-day financial management, healthcare planning and estate planning.
Looking to the rest of the year, employers seeing the greatest returns on investment are those treating financial wellness as a fundamental part of their benefits strategy. Organizations that acknowledge the connection between financial stress and workplace performance are developing more sophisticated approaches to supporting their workforce.

The most successful programs recognize that financial wellness isn’t one-size-fits-all. Personalization and flexibility have become key, with benefits packages that can be tailored to individual circumstances and needs across diverse workforce demographics.

By addressing both immediate financial pressures and long-term security, employers can create an environment where workers can focus on their jobs without the distraction of financial stress, benefiting both employees and the companies they work for.

Looking for a financial wellness solution to support your employees? Try Best Money Moves!

Best Money Moves is an AI-driven, mobile-first financial wellness solution. BMM is designed to help employees with varying experience dial down their financial stresses. Best Money Moves offers comprehensive support toward any money-related goal.
Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. To learn more, contact us at customersupport@bestmoneymoves.com and we’ll reach out to you to schedule a call!

Financial Wellness Is The Best Answer To Wage Stagnation

Financial Wellness Is The Best Answer To Wage Stagnation

by | May 14, 2025 | For Employers

For millions of American workers, the income from one job is simply not enough to cover basic living expenses anymore. Despite an increase in prices and growing inflation, wages have remained unchanged for many Americans. According to ResumeNow’s Wage Reality Report, one-third of workers say their salary hasn’t kept pace with inflation, and it’s taking a major toll on financial health, mental health and productivity.

Because compensation is failing to keep pace with rising costs, companies are pivoting to financial wellness programs to provide solutions both employers and workers desperately need.

Learn why Financial Wellness may be the best answer to this growing issue.

Who Suffers From Wage Stagnation?

Wage stagnation happens when workers’ pay increases at a slower rate than inflation, reducing their ability to afford common goods and services. Wage stagnation has become increasingly common across the United States, with 55% of workers reporting their salaries are lower than they should be.

The consequences of wage stagnation go far beyond tight household budgets and savings accounts. According to a survey from Zety, more than one in three workers feel hopeless, anxious or frustrated about their chances of meeting life goals on their current salary. This financial distress directly impacts workplace performance, with 36% of employees reporting feeling less motivated to exceed expectations at work.

Even more concerning for employers, more than one in four workers are actively seeking new job opportunities for higher salaries. Meanwhile, 20% admit they’re more focused on increasing their income than improving their job performance.

The Hidden Cost of Financial Stress

The impact of wage stagnation directly affects a company’s bottom line. Financial stress costs employers an estimated $200 billion annually through decreased productivity, increased absenteeism and higher turnover rates.

This stress affects employees of all levels. According to Forbes, 76% of C-suite executives and HR leaders reported experiencing financial stress themselves, while a staggering 92% of employees acknowledged being stressed about their finances.

While financial stress affects employees in the short term, long term financial milestones are also stunted. According to HR Dive, 40% of employees say they cannot save for retirement, while 37% report being unable to afford to buy a home.

In response to these challenges, organizations are using benefits packages to provide financial wellness initiatives. These initiatives address immediate needs while building long-term financial resilience among their workforce.

Financial wellness programs typically include:

  1. Educational resources that help employees better manage their existing finances
  2. Retirement planning support that helps employees prepare for the future regardless of current wage constraints
  3. Comprehensive budgeting tools that help track and manage expenses
  4. Personalized AI insights for specific employee needs

Why Financial Wellness Is the Key to Addressing Wage Stagnation

While wage stagnation presents significant challenges for both employees and employers, financial wellness programs offer a practical path forward even when salary increases aren’t feasible. These initiatives address the core issues behind financial stress while providing employees with tools to support existing compensation and build toward more secure futures.

By investing in financial wellness, companies can significantly reduce the productivity drain caused by financial stress while demonstrating a commitment to employee wellbeing. This approach creates a more engaged, productive workforce and builds loyalty during a period when more than a quarter of financially stressed workers are contemplating leaving for better opportunities elsewhere.

The data is clear: when companies can’t immediately solve wage stagnation through compensation increases, comprehensive financial wellness programs offer the most effective alternative for empowering employees and creating financially healthy organizations.

The Truth About the Sandwich Generation: 3 Unique Insights

The Truth About the Sandwich Generation: 3 Unique Insights

by | May 7, 2025 | For Employers

Employees of different generations have different financial struggles. Recent grads may struggle with student debt, while older individuals may focus on building a solid retirement plan. But what about employees in between?

This section of the workforce is aptly labelled “the sandwich generation,” and represents working adults caught in a unique and challenging life stage. Usually between ages 40 and 60, these employees both care for aging parents while supporting their own children. Members of the sandwich generation are responsible for overwhelming responsibilities that may impact their financial well-being.

This phenomenon has been around since the 1980s, but has only grown since then. Parents are deciding to have their children at later stages in their lives, while lifespans for older individuals are increasing. In addition, according to the census, nearly 1 in 3 adults aged 18 to 34 lives with their parents, which adds to their caregiving burden. This is an issue that is likely affecting your workforce in unforeseen ways.

Here are three insights you should know about the sandwich generation.

The burden on employees in the sandwich generation is significant

The financial and emotional challenges facing the sandwich generation are far-reaching. According to a survey conducted by Wakefield Research, a staggering 72% of caregivers report having to make difficult financial sacrifices that impact their quality of life.

These sacrifices are not trivial choices but critical decisions about survival and support. An AARP survey found that American caregivers provide nearly $600 billion in unpaid care annually, not to mention the additional time investment. Individually, this rounds out to $61,000 in caregiving expenses annually for the average family. These costs include food, medical supplies, home modifications and medicine.

Many are forced to cut back on essential expenses, depleting their carefully saved retirement and personal savings just to meet the immediate needs of their families. Some even reduce medical care expenses, putting their own health at risk to support their loved ones.

As a result, half of all caregivers experience increased emotional stress, with the constant pressure of supporting two generations creating a taxing state of anxiety, overwhelm and burnout. Physical stress impacts 37% of caregivers, resulting in health issues directly related to the demanding nature of their responsibilities. The persistent nature of this stress is evident in a startling statistic: 40% of caregivers rarely or never feel truly relaxed. The mental health implications are severe, with 56% struggling to maintain their psychological well-being and 41% reporting feelings of profound loneliness.

Caregiving often comes at the cost of career opportunities

However, the professional consequences of being in the sandwich generation extend far beyond personal stress. More than half (53%) of working caregivers have made significant career sacrifices, often stepping back from professional opportunities or reducing their work commitments. Retirement planning has become a luxury many cannot afford, with 42% delaying their retirement plans to meet immediate family needs.

Their commitment is further illustrated by the fact that 40% would willingly take a pay cut to gain more flexibility for caregiving responsibilities. In fact, 15% of working caregivers are considering leaving their jobs entirely in the next six months to focus exclusively on caregiving.

Employers have a responsibility to provide support to those in the sandwich generation

For organizations, supporting employees in the sandwich generation is not just an act of compassion — it’s a critical business strategy to improve retention and workforce well-being. Employees experiencing such intense personal pressures are at high risk of reduced productivity, increased absenteeism, higher stress and burnout.

To support your sandwich generation employees, consider these targeted benefits.

Flexible work arrangements: Traditional work models can no longer accommodate the complex lives of sandwich generation employees. It is imperative to offer remote work options that allow employees to manage caregiving responsibilities, providing flexible scheduling that recognizes their multiple commitments.

Financial wellness programs: Comprehensive financial support goes beyond traditional benefits. Offering financial planning educational resources helps employees navigate their complex financial landscapes. Dedicated caregiver support resources and emergency savings programs can provide a critical safety net for those managing multi-generational responsibilities. Budgeting tools and catered financial content also can help workers plan for the future with the best information.

Mental health support: Recognizing the profound emotional toll of caregiving, employers should provide comprehensive mental health coverage. This includes counseling services specifically tailored to caregivers, stress management workshops that provide coping strategies and support groups that create communities.

Comprehensive insurance options: Insurance benefits must evolve to meet the complex needs of the sandwich generation. This includes extended family care insurance, flexible spending accounts for dependent care, and health insurance options that cover multi-generational care needs.

Looking for a fintech solution to support your employees? Try Best Money Moves!

Best Money Moves is an AI-driven, mobile-first financial wellness solution. BMM is designed to help employees with varying experience dial down their financial stresses. Best Money Moves offers comprehensive support toward any money-related goal. 

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. To learn more, contact us at customersupport@bestmoneymoves.com and we’ll reach out to you to schedule a call! 

Budgeting With Irregular Income: 4 Simple Ways to Support Educators

Budgeting With Irregular Income: 4 Simple Ways to Support Educators

by | Apr 23, 2025 | For Employers

Only 71% of U.S. workers earn stable, full-time pay year-round according to the Bureau of Labor Statistics. This leaves nearly a quarter of the workforce with irregular income and the financial instability that comes with it.

Financial instability and income irregularity apply to various professions, including seasonal and gig workers. However, the issue is especially pressing with educators. Roughly 22% of teachers are only paid during the 10-month school year, leaving a two-month gap in earnings every summer according to the online resource platform, We Are Teachers. This is despite the fact educators often spend their summers preparing for the next school year.

So it’s no surprise that income-related anxiety is especially common among educators. A recent Stanford-led study showed that nearly half experience frequent financial anxiety compared to only 17% of the general population.

This financial stress can significantly impact job performance and overall well-being, making it crucial for employers to find ways to support educators earning irregular incomes. Here are four simple ways employers can help.

1. Encourage budgeting and savings plans for your employees with irregular income

One of the most practical ways for employees with fluctuating incomes to gain financial stability is strategic budgeting. Employers can offer guidance on creating a budget that accounts for months of high and low income. Then, take pains to help employees to avoid financial stress during low-income periods. Financial advisors have recommended identifying months when income is expected to dip and planning spending accordingly. This approach to budgeting can prevent unexpected expenses from throwing an employee’s finances off track​.

Additionally, setting aside a portion of higher earnings during peak months can create a cushion during lower-income periods. Employers can support educators by providing access to budgeting workshops or digital financial tools like those included in Best Money Moves. Creating a workplace culture that promotes financial security and preparedness can alleviate stress and help employees feel more confident in managing their futures.

2. Support employees in building an emergency fund

Emergency expenditures can cause considerable strain on workers without consistent year-round income. A study from the Aspen Institute shows that many lower-income employees with irregular earnings experience “spending spikes” due to unplanned expenses. For these employees, an emergency fund is a crucial financial safety net​.

To help employees build an emergency fund, employers should offer programs that make this type of saving easier to attain. One way to support your employees is by establishing a payroll deduction program. This would allow employees to automatically put some of each paycheck into a designated savings account. Employers could also match contributions up to a certain amount or offer other financial incentives to encourage these helpful saving habits.

3. Educate employees with Irregular Income about predatory lending options

For employees struggling to make ends meet during low-income months, payday loans or other high-interest lending options can be tempting but often come with steep consequences. Payday loans carry exorbitant costs, with an average annual percentage rate (APR) of roughly 400% and some reaching as high as 600% according to the Consumer Protection Financial Bureau. These loans can quickly become a trap, as over 80% of payday loans are either rolled over or followed by another loan within two weeks, leading to a cycle of debt that is difficult to escape​.

Employers can play a crucial role by offering financial education through programs like Best Money Moves that highlight the risks of payday loans. Additionally, they can point employees toward safer alternatives, such as credit unions, low-interest loan programs or paycheck advance services, all of which provide more secure options for managing financial strain during challenging times.

4. Invest in employee financial wellness

Financial wellness programs are one of the most effective ways employers can support employees with irregular incomes. They offer tools designed to help employees manage their financial lives effectively such as budgeting, saving and debt management tools, customized user journeys, and articles that guide employees through common financial challenges.

Programs like Best Money Moves have also been shown to improve employee retention and morale. In a recent Bank of America study, 84% of employers noted that these programs help keep employees engaged. Financial wellness programs can be particularly impactful for teachers, who face unique challenges. Around 71% of teachers with student loan debt have considered quitting or changing careers due to financial stress according to a study.com survey.

By reducing financial stress, employers can help employees spend less time stressed about money and improving quality of life.

Looking for a fintech solution to support your employees? Try Best Money Moves!

Best Money Moves is an AI-driven, mobile-first financial wellness solution. BMM is designed to help employees with varying experience dial down their financial stresses. Best Money Moves offers comprehensive support toward any money-related goal. 

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. To learn more, contact us at customersupport@bestmoneymoves.com and we’ll reach out to you to schedule a call!