CFP Board survey: LGBTQ+ investors report feeling financially secure

WASHINGTON, D.C., November 13, 2023 — New data from CFP Board reveals that more than 6 in 10 LGBTQ+ investors (61%) report feeling financially secure. Marriage and long-term relationships play a significant role in creating this sense of security for LGBTQ+ investors — an overwhelming majority of married LGBTQ+ investors (81%) feel that their marital status has a positive impact on their financial readiness.

These findings and more were outlined in CFP Board’s Consumer Sentiment Survey — LGBTQ+ Financial Planning Pulse, presented at the CFP Board Center for Financial Planning’s sixth annual Diversity Summit.

“Since the 2015 Obergefell v. Hodges decision legalized same-sex marriage and signaled the broader acceptance of the LGBTQ+ community, the financial security of the LGBTQ+ community has significantly improved,” said CFP Board CEO Kevin R. Keller, CAE. “With the growing diversity of affluent investors, the personalized professional financial planning advice of a CERTIFIED FINANCIAL PLANNER^™ professional is now more critical than ever. This is especially true for addressing the complex financial planning needs of diverse investors, including the LGBTQ+ community.”

This feeling of financial security extends to a heightened sense of retirement preparedness in the LGBTQ+ community — 2 in 3 LGBTQ+ investors (66%) feel they are more prepared for retirement than their non-LGBTQ+ peers. Perhaps an indication of broader financial security in the LGBTQ+ community, 56% of all LGBTQ+ investors surveyed currently work (or have worked) with a financial planner. This percentage increases for married investors, 84% of whom currently work with a financial planner, compared to only 38% of single respondents.

Married LGBTQ+ investors report stronger sense of financial security

Across income levels and racial backgrounds, LGBTQ+ investors who are in a long-term relationship or married report a higher level of financial security than their single LGBTQ+ counterparts.

While financial security persists at high levels across the LGBTQ+ community, white and married respondents are the most financially secure among their peers. Accordingly, 71% of white LGBTQ+ respondents report feeling financially secure, compared with only 39% of their Black peers. This feeling of financial security increases for LGBTQ+ investors with a household income of over $250,000 annually (83%). Only 22% of respondents with an annual income under $35,000 reported feeling financially secure. Married respondents are also more likely to own property (91% compared to 44%) than their single counterparts.

“Although the financial security of the LGBTQ+ community has improved in recent years, older generations of LGBTQ+ investors who have not benefited from the increased acceptance of LGBTQ+ issues are still struggling financially,” said CFP Board Ambassador Laura LaTourette, CFP^®, Principal at Family Wealth Management Group. “Affordable housing, the need for safe spaces and the intricate financial planning nuances required for domestic partnerships are all major issues facing LGBTQ+ investors as they prepare for and enter retirement. I’m excited to partner with CFP Board to draw attention to the needs of this diverse and vibrant community and ensure CFP^® professionals have the resources they need to serve it.”

A plurality of CFP^® professionals (57%) recognize the unique challenges facing the LGBTQ+ community. However, only half (50%) of surveyed CFP^® professionals agree they are adequately prepared to meet the unique challenges of LGBTQ+ investors, including estate planning and domestic partnerships.

While many LGBTQ+ investors work or have worked with a CFP^® professional (56%), nearly three-quarters of LGBTQ+ investors (74%) would be more interested in working with a financial planner who identifies as a member of the LGBTQ+ community.

To find a CFP^® professional who can help you achieve your financial goals, visit LetsMakeAPlan.org.