New study: Only half of LGBTQ+ people say they are confident in their ability to save for retirement
Columbus, Ohio, June 1, 2022 /PRNewswire/ — LGBTQ+ Americans are less likely to be on track to meet their financial goals, have the ability to absorb unexpected expenses, or feel confident in their ability to save for retirement compared to to the general population, according to a new National Retirement Institute investigation. Nearly two-thirds of LGBTQ+ Americans say they live paycheck to paycheck most of the time. This figure jumps to 72% for Black LGBTQ+ members.
LGBTQ+ survey respondents indicated they were less knowledgeable than the general population on important financial topics, including retirement planning (by 13%), estate planning (12%), and investing in the stock market (8%).
“As consumers grapple with rising inflation, soaring gas prices, soaring housing costs and more, access to sound, personalized financial advice becomes more important,” said Rona Guymon, senior vice president of annuity distribution at Nationwide Financial. “This is especially true for LBGTQ+ people, who may face additional challenges that strain their finances.”
Meeting the needs of the LGBTQ+ community
Two-thirds of LGBTQ+ Americans say they face unique financial challenges that most non-LGBTQ+ people don’t experience.
- More than a third (37%) say their career has been negatively affected due to gender identity or sexual orientation and almost half (46%) say their opportunities for career advancement have been negatively affected because of gender identity or sexual orientation. These challenges negatively impact the earning potential of LGBTQ+ people, a problem that worsens as they age.
- More than half (56%) believe that LGBTQ+ people experience higher health care and health insurance costs than non-LGBTQ+ people.
- About half of LGBTQ+ Americans find it harder for them to save for families (52%) and find housing (47%) than for non-LGBTQ+ people.
How the financial services industry can better serve the LGBTQ+ community
Seven in 10 LGBTQ+ Americans say they would feel more comfortable with an advisor or financial professional who is a member of the LGBTQ+ community (or a vocal ally). Less than four in ten (37%) believe that financial advisors understand their unique challenges, highlighting a major opportunity for advisors to better meet their needs.
To better support them with their personal finances and financial planning, LGBTQ+ members want to see:
- Improved benefits for unmarried partners (41%).
- Baby boomers are the most likely to say that better benefits for unmarried partners would be the most beneficial (52%).
- Increased representation of their community in the financial services profession (34%)
- Greater awareness of bias and discrimination affecting the LGBTQ+ community in the financial services industry (34%).
The primary financial goals of the LGBTQ+ community are saving for experiences like travel and recreation, paying off debt, and saving for retirement, in that order.
“The first step and the most important way for advisors and financial professionals to better serve the LGBTQ+ community is to understand their unique challenges and concerns,” Guymon said. “There are lessons we can all learn from this survey to better meet the needs of this community and many others.”
Created nationwide this resource to help advisors and finance professionals understand the needs of LGBTQ+ clients.
“Members of the LGBTQ+ community should seek out self-identified LGBTQ+ advisors or financial professionals or those who are vocal and visible allies,” Guymon added. “Look for finance professionals who participate in the local pride parade or festival – or ask for references from other members of the community to identify those who have a strong track record of serving LGBTQ+ clients. You can also visit letmakeaplan.org to find an LGBTQ+-focused counselor in your area. »
Edelman Data and Intelligence (DxI) conducted an online survey of 1,000 nationally representative adult US consumers and 1,000 members of the LGBTQ+ community on behalf of Nationwide. The survey was carried out from From April 22 to April 28, 2022 and has an overall margin of error of ±3% at the 95% confidence level.
Nationwide, a Fortune 100 company based in Columbus, Ohiois one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by AM Best and Standard & Poor’s. An industry leader in customer-focused innovation, Nationwide offers a full suite of insurance products and financial services, including auto, business, home, farm and life insurance; public and private sector pension plans, annuities and mutual funds; surplus & surplus, specialty and deposit; animal, motorcycle and boat insurance. For more information, visit www.nationwide.com. follow us on Facebook and Twitter.