How Does The LGBTQ Community Feel About Their Money?

Seven in ten LGBTQ Americans say they are behind on saving for retirement. This statistic blows my mind as my recent post that talked about how married Gay Men and Lesbians made more on average than our straight counterparts.  All the same, I’m not terribly surprised. Like many communities across the country, the LGBTQ community has members who are doing extremely well and others who are struggling.

Average incomes aside, LGBTQ (Lesbian, Gay, Bisexual, Transgender, Queer, or Questioning) Americans are less likely to feel secure financially. We also tend to struggle more with personal financial issues than the rest of America according to research from Mass Mutual.

Our lack of financial security is no surprise to me. Years of discrimination and lack of marriage rights have chipped away at our efforts to make smart financial decisions and slowing our pace of the LGBTQ community achieving financial freedom. This is in addition to our more obvious challenges like pressure to keep up with the gay lifestyle, or even the extra costs when starting a family.

Here are the most interesting stats about LGBTQ Finances:

LGBTQ Retirement: A whopping 70% of the LGBTQ community reported being behind when it comes to saving for retirement. This is compared to 63% of the general population. There is not a better day than today to get started saving. 

LGBTQ Spending: Do you agree? “spending money to enjoy myself now is more important than saving for the future” If you are LGBTQ you more likely to agree 36 percent to 27 percent respectively. I’m all for balance on this one, but get it together people.

I’m all for living for today, but if you don’t put anything away, you may need to work forever. I think we can all agree that there is nothing fabulous about that.

LGBTQ Retirement Advice? - 54% of the LGBTQ respondents wished their employer would provide more education about retirement planning.  40% responded that they don’t understand how to save or invest for their financial situation.

Related: The 5 Big Threats to a Great LGBTQ Retirement

General Finances and the LGBTQ Community:

Just 27% of LGBTQ respondent have $5000 or more in an emergency fund. An unexpected expense of $5000 would create significant discomfort for 44% of those in the study. Both of these levels are higher than the population at large.

$5000 may seem like an insurmountable of money to save up. Start small and shoot to save $500. Then $1000. Then three months rent. You will be on track before you know it.

Get a Free Copy of Our Ebook- 10 Ways To Get Your LGBT Financial House In Order

Managing LGBTQ Finances:

According to the study, 59% saying they don’t always have enough money every month, compared to 48% of the general population.  Half of LGBTQ workers with lower incomes (less than $45,000) found it difficult to manage their household expenses. High levels of debt are the driving cause of financial stress for both LGBTQ (54%) and the general population (53%).

LGBT Specific Financial Needs:

53% of LGBTQ people are unsure where to go for the best financial advice. I hate to admit it, but the financial services industry is dominated by old white conservative men. Not always the most pro-LGBT group. We, as a community, have different, needs, goals, and financial challenges. We should all be getting the best gay financial planning advice that money can buy.

There are many types of LGBTQIA households across America. We all face different financial challenges and have varying opportunities. That being said, we all deserve the change to achieve financial security at the very least.  I would love to see every single member of the great Queer community get themselves on track to achieve financial freedom.

This research polled 500 respondents who identified themselves as LGBTQ as part of a broader study of working Americans ages 25 to 65 who earned annual incomes between $35,000 and $150,000.

How do you feel about your finances? Do you think being LGBT has helped or hurt how you feel about money?