What we can learn from queer travelers
The Millennial generation teaches us a thing or two about life. We GenXers and Boomers sacrificed fun and money for our McMansions, five- and six-figure cars, and drove the stock market to new highs. Millennial queer travelers, on the other hand, have embraced the “you only live once” ethos and are now enjoying more fulfilling lives. . . but at what price?
What queer travelers should know
Approximately 20% of Millennials report being members of the queer community. Grindr This emerges from a current LGBTQ Millennial Travel study that 40% of queer millennials travel quarterly and almost 25% travel monthly. The silver lining is that over 50% of queer travelers start saving their travel money three to six months in advance.
What’s surprising is that an estimated $100 billion is spent on queer travelers in the United States, and millennial queer travelers spend a significant portion of that $100 billion. Queer Millennial travelers are like average Millennials, who spent $4,594 per person on travel in the 12 months ending November 2017, up 8% from 2016.
The Risk of the YOLO Lifestyle of Queer Travelers
Catching the travel bug isn’t uncommon, but traveling isn’t cheap, although there are countless ways for the general population and LGBTQ travelers to manage travel costs. Regardless of the cost, the majority of queer travelers expect a trip. This begs the question: Are queer millennials making a mistake with their YOLO mentality?
In a recent Aperion study, 34% of Millennials surveyed said they could comfortably retire on $200,000 or less. 55% felt a comfortable retirement was possible with $500,000 or less, and fully 75% felt they would need $1,000,000 or less.
Since the average American household spent $57,311 in 2016, according to the Bureau of Labor Statistics, a $200,000 retirement nest egg would last just over 41 months, or less than three and a half years. A nest egg worth $500,000 will last you about eight and a half years. A $1,000,000 retirement account would last a little longer than 17 years. None of this contributes to inflation.
A queer journey of the future
What expectations should queer travelers consider when enjoying their YOLO lifestyle?
At the current inflation rate of 2.5%, the above $57,311 expenditure will turn into $153,883 in 40 years, when many LGBTQ millennials reach peak retirement age. Social Security income, which makes up a large portion of income for people with limited retirement savings, is tied to the Consumer Price Index (CPI). The CPI has risen more slowly than the general inflation rate for years (2.45% from 1993 to 2010), while health care costs, which make up a large portion of retirement savings, rose 6.4% annually between 1993 and 2010.
As a result, Social Security income has been shown not to keep up with expenses for many retirees, and Millennials shouldn’t rely too heavily on Social Security.
Queer travelers should know this retirement magic money number
We believe that everyone, including LGBTQ millennials, can live an amazing life and not be fabulously broke. Anyone, including LGBTQ Millennials, can live the life they want, even while traveling, if they use the right tools and have the right expectations.
Knowing their target retirement figure should inspire queer millennials to give their retirement as much attention as traveling, and the sooner they start saving more for retirement, the better, as compound interest matters. The longer and more consistently queer millennials invest in the market, the more likely they are to achieve higher and more realistic retirement savings goals.
The S&P 500 index has delivered an average annual return of 9.8% over the past 90 years. Therefore, the 25-year-old Millennial who has no money saved today can reach $1 million in retirement savings in 40 years (age 65) by investing $225 every month at 9% for the next 40 years. The 35-year-old Millennial who has no money saved today will need to invest $560 per month at 9% for 30 years until age 65 to save $1,000,000.
However, LGBTQ Millennials don’t have to completely sacrifice today for tomorrow. With realistic expectations and proper planning, they can live the life they want today and the life they want in retirement. Maybe today it just means postponing some travel and cutting back a bit now so they can live YOLO into their 20s, 30s and beyond.
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