Nicole Johannesen: Becoming more inclusive does not require a major transformation programme
We’ve all heard about the gender pay gap, and the knock-on impact this has on pensions. There is also an LGBTQ+ pay and pension gap.
Research by Scottish Widows shows almost half (49%) of LGBTQ+ people are on track for less than a minimum retirement lifestyle, compared with 38% of non-LGBTQ+ people. More than half (54%) aren't confident managing their retirement savings, compared with 37% of the wider population, while 30% are not saving for retirement at all.
These figures highlight that retirement outcomes are shaped by much more than pension contributions alone. Family circumstances, health, financial confidence, workplace experiences and access to support can all influence financial wellbeing later in life.
For trustees and employers, Pride Month provides a reminder to consider whether pension scheme benefits, communications and member experiences are genuinely inclusive and accessible to all.
Retirement journeys are not all the same
Barnett Waddingham's 2024 research showed LGBTQ+ members may be less likely to have a partner or children as they approach later life and can face a greater risk of social isolation. For those who also face barriers linked to gender, ethnicity, disability or socio-economic background, the challenges can be even greater.
This does not mean LGBTQ+ people (or those from other minority groups) need different pensions, but that trustees and employers should recognise the different journeys and priorities of different members. Inclusive governance means understanding those experiences and ensuring schemes support the diverse range of people they serve.
Inclusion is a governance issue
One simple way to improve inclusion is through communications. The language used can have a significant impact on whether people feel recognised and supported. Small changes, such as using "partner" rather than "husband" or "wife", can help avoid assumptions about relationships and family circumstances. Member communications should avoid reinforcing stereotypes, be sensitively written and use imagery that reflects the diversity of the scheme's membership, with case studies or examples to bring real experiences to life.
Beyond communications, trustees should regularly review whether their policies, processes and member journeys reflect their membership diversity. This might include collecting diversity data where appropriate to understand the make-up of the scheme, encouraging ongoing member feedback and ensuring administrators can handle sensitive situations confidently and respectfully.
It's also important for trustees to be aware of relevant issues for minority groups so they can challenge unconscious bias in their decision making. In February 2026, we hosted an internal training session for all Vidett staff on the implications of the Supreme Court gender ruling on pension benefit design, administration processes and discretionary decision-making, so that all staff are equipped to ask the right questions of our advisers.
The goal is not to create special treatment, but to ensure every member can engage with their pension confidently and access support without unnecessary barriers.
Understanding family structures and the law
Pensions are about much more than retirement income. They also provide important protection for loved ones through death benefits and survivor pensions. This is an area where inclusive processes and clear communications can make a real difference.
Cohabiting same-sex couples, for example, are statistically less likely to be married or in a civil partnership than cohabiting opposite-sex couples (68% versus 80%, based on 2021 England & Wales census data). Where benefits depend on trustee discretion, unmarried surviving partners may need to demonstrate financial dependency, creating additional complexity, stress and uncertainty at an already difficult time. Encouraging members to complete and regularly review their expression of wish forms can help provide greater clarity when decisions need to be made, and trustees should maintain a robust audit trail of their decision making.
Historic pension scheme rules can also create challenges in some circumstances. For example, where eligibility for survivor benefits is linked to dates that pre-date the legal recognition of same-sex civil partnerships in the UK (December 2005), there may be unintended consequences for LGBTQ+ members who were prevented from being eligible due to the law at the time.
The 2025 Supreme Court ruling on the legal definition of ‘sex' adds further complications for transgender people and the calculation of their benefits (for example, which actuarial factors to use if these differ by sex). It is worth checking that your scheme administrators understand the implications of this ruling on members who might be impacted.
Small changes can make a big difference
These situations highlight the importance of making decisions with empathy, compassion and an open mind, while maintaining strong governance and decision-making processes. Whilst such situations might crop up relatively infrequently, the way trustees and administrators approach them can make a real difference to impacted individuals.
For many schemes, becoming more inclusive does not require a major transformation programme. Relatively simple changes, such as reviewing communications, updating language, considering different family structures and ensuring processes are designed with inclusivity in mind can make meaningful improvements.
Pensions are deeply personal because they intersect with relationships, identity, family and financial security. By taking an inclusive approach, trustees and employers can ensure all members feel recognised, respected and supported throughout their retirement journey.
Nicole Johannesen is an associate director at Vidett and a member of its equity, diversity & inclusion team
