New Data Show Women in Same-Sex Marriages Live Longer, Have Greater Retirement Planning Needs

Women in a same-sex relationship have a higher life expectancy than people in a heterosexual couple or a male same-sex couple, an important factor to consider when planning for retirement, according to J.P Morgan’s annual retirement guide.

It is well-established that women tend to live longer than men. J.P. Morgan’s “2024 Guide to Retirement” analyzed life expectancy, a key benchmark for advisers to consider, by gender couplings.

Each partner in a female couple has a higher life expectancy than when they are in a heterosexual relationship and than any male. Men in same-sex relationships have the lowest life expectancy in the two categories.

“When you’re making any investment decisions, what’s one of the first considerations that come into play? It’s your investment time horizon, and as it relates to the retirement planning landscape, that’s your longevity: how long you’re going to live,” said Mike Conrath, J.P. Morgan Asset Management’s chief retirement strategist, at the retirement guide’s launch event.

Conrath said it is not common in retirement planning to think of 30, 35 or more years without a paycheck. In his view, plan advisers should think about the time horizon very thoughtfully, while keeping in mind life expectancies could vary in either direction.

“First of all, life expectancies are averages, but no one is really an average,” he said. “But as it relates to longevity, these are really midpoints, not necessarily endpoints, so you’ve got to keep that in mind as well.”

The J.P. Morgan guide suggests:

• Investing a portion of a portfolio for growth is important to maintain purchasing power over time;
• Delaying benefits means increased Social Security income later in life, but a portfolio may need to bridge the gap and provide income until delayed benefits are received; and
• The lower an expected long-term investment return and the longer the life expectancy, the more it pays for participants to wait to take their benefits.

Smoking continues to be a notable factor in individuals’ longevity, with non-smokers having a significantly higher life expectancy compared to the population average.

Source: J.P. Morgan