LGBTQ+ community sees decrease in personal financial security
Nationwide report notes that financial challenges include career limitations due to their gender identity or sexual orientation.
Personal finance is not a static issue nor does everyone define it uniformly. Case in point is the perspective of the LGBTQ+ community on their finances. A new Nationwide study shows that LGTQ+ Americans are, in fact, less likely than the general public to have a positive view of their personal financial situation.
It seems boomers are the only majority to rate their personal financial situation as good or excellent. But the LGBTQ+ community is falling behind in their personal financial security. Twenty-five percent of the general population say they somewhat or strongly disagree that they have day-to-day or month-to-month control of their finances. The LGBTQ+ community is at a higher percentage coming in at 29%.
The LGBTQ+ sentiment is higher on the negative side in answering all survey questions including having the capacity to absorb unexpected expenses, the financial freedom to make choices, confidence about saving for retirement, meeting financial goals, feeling secure and living paycheck-to-paycheck,
Financial literacy is also at lower levels. However, financial goals of the broader community and the LGBTQ+ community are relatively the same. At the top of the list are planning for retirement, saving for experiences, paying off debt, saving for large expenses, and saving for essential items. The largest financial challenge for both groups is inflation or rising living costs (47% general population, 43% LGBTQ+), cost of housing (28% general population, 25% LGBTQ+), and the third largest challenge is lack of savings for unexpected emergencies (27% general population, 32% LGBTQ+).
The report notes that the LGBTQ+ community faces unique financial challenges and many experience career limitations to their gender identity or sexual orientation.
Seven in 10 say they would feel more comfortable working with a financial advisor who is also a member of the LGBTQ+ community or a vocal ally. Sixty-six percent say they face unique challenges that most non-LGBTQ+ people do not, and 63% say they feel most financial advisors/planners do not understand the unique financial challenges of the community.
When asked what would most benefit LGBTQ+ Americans with regard to personal finance and planning, 41% said improved benefits for unmarried partners, 34% said increased representation of the LGBTQ+ community in the financial services industry and another 34% said increased awareness of LGBTQ+ bias and discrimination in financial services.
The Nationwide survey canvassed 1,000 people from the US general population and 1,000 people from the LGBTQ+ community between April 22nd and April 28th, 2022.