The LGBTQ+ Money Study reveals fewer than half of LGBTQ+ Americans believe they possess the necessary readiness to navigate significant financial milestones. That paints a concerning picture of financial preparedness within the community. A mere 46% express confidence in their ability to establish and sustain emergency savings, while an even smaller fraction, 39%, feel equipped to tackle their own tax obligations.
The apprehension extends further into critical realms of financial planning. Only 36% feel prepared to navigate decisions regarding retirement. The prospect of homeownership appears daunting for 23% of LGBTQ+ individuals, while a mere 21% feel equipped to delve into investment choices — the lowest percentage of preparedness across the spectrum of financial decisions.
Despite federal efforts to safeguard their rights, discrimination and ongoing legal disparities persist for LGBTQ+ individuals, intensifying the financial stress experienced compared to previous years.
LGBTQ+ Individuals Are Statistically Less Equipped
When it comes to essential financial tools like access to credit, savings, or investment opportunities, LGBTQ+ Americans tend to have less compared to the average American population. This discrepancy can arise due to various factors such as discrimination, lower income levels, or limited access to financial education and resources.
The study reveals that when it comes to investment products, including retirement accounts, government pensions, and non-retirement investment accounts, LGBTQ Americans lag behind the broader U.S. population significantly. For instance, they are 36% to 51% less likely to have retirement accounts and 13% to 21% less likely to have Government pension.
Discrimination also extends to insurance products, mortgages, and estate planning. A 2023 survey from the Center for LGBTQ Economic Advancement & Research and Movement Advancement Project, The LGBTQ+ Economic and Financial (LEAF) Survey, found that 23% of LGBTQ+ Americans lack a checking or savings account.
LGBTQ+ Americans Have a High Amount of Financial Stress and Anxiety
In 2023, 72% of LGBTQ+ Americans reported feeling burdened by financial stress, marking a 3% increase from 2022. Genderqueer and nonbinary individuals experienced the lowest levels of financial stress, with 61% reporting regular economic anxiety.
Among LGBTQ Americans, one-third grapple with financial stress every day. More than half report experiencing finance-related anxieties at least once a week, while just 15% seldom worry, reporting economic anxiety less than once per month. There is a pervasive level of financial anxiety within the LGBTQ+ community.
46% of LGBTQ+ respondents express financial anxiety. Contrast that with only 23% among non-LGBTQ+ respondents. Additionally, 41% of LGBTQ+ individuals feel overwhelmed by their finances, nearly twice as many as the 22% of non-LGBTQ+ counterparts. Nearly one-third of LGBTQ+ respondents experience financial-related depression, double the rate of non-LGBTQ+ respondents (16%). These findings emphasize the need for tailored support and advocacy.
Major Concerns
Unplanned financial emergencies are the most prevalent worry in the community. 68% of respondents list them among their top three financial concerns.
Following closely behind, 63% of LGBTQ+ adult individuals expressed fears about keeping up with day-to-day expenses.
The survey found that paying for a child’s education ranked lowest among the primary worries for LGBTQ+ Americans, cited by only 16% of respondents. Concerns regarding the affordability of owning a home were similarly minimal, with only 30% expressing worry.
Making sound investment decisions rounded out the list, with 32% of LGBTQ+ individuals expressing concern about navigating the complexities of investment choices. These findings underscore the multifaceted financial woes within the LGBTQ+ community, reflecting a diverse array of challenges that individuals grapple with in achieving economic stability and security.
What Next?
Despite community eagerness to instigate positive transformations, recent statistics reveal a disheartening reality. More than half (55%) of LGBTQ+ Americans have encountered discrimination when acquiring financial services, banking, or investing services. It gets even worse for transgender Americans, among whom a staggering 74% report facing discrimination within the industry.
There is a pressing need to cultivate environments wherein LGBTQ+ individuals feel safe and respected. Prevalent systemic biases and hurdles continue to hinder the financial well-being and opportunities of LGBTQ+ Americans.
The financial industry profoundly influences people’s economic paths and future security. Creating an inclusive environment that supports LGBTQ+ individuals is not just a moral obligation but also a strategic advantage for businesses in today’s diverse society. Prioritizing diversity and fighting discrimination enables the financial sector to meet all Americans’ needs regardless of sexual orientation or gender identity.
