Now that LGBT Americans have achieved the right to same-sex marriage, 401k retirement issues are moving to the forefront of their concerns.
Prudential Financial found people more worried that broad economic forces like market volatility or lingering low interest rates would hinder their ability to achieve lifetime financial security than LGBT-specific rights issues.
That LGBT Americans share the same concerns about saving for retirement as the general population is a shift from Prudential’s 2012 survey, when basic rights issues were top of mind.
“Having the fundamental right to marry has begun to simplify financial lives within the LGBT community,” said Kent Sluyter, CEO of Individual Life Insurance and Prudential Advisors. “Unfortunately, wage inequality, workplace insecurity and pension survivor benefits issues still cast a shadow on the ability to attain true financial security. This important study helps to understand the financial lives of LGBT Americans who are living in a new world that recognizes basic rights, giving the financial services industry insight to better serve this community.”
Changing Households
Those surveyed say the right to marry has given them the ability to file joint tax returns, pay for health benefits with pre-tax earnings, list same-sex partners on health insurance, and ensure that a loved one’s interests are protected in the event of death, but only a third say the Obergefell decision affected future financial plans.
Among key findings:
- The marriage rate has more than tripled since 2012, having increased to 30 percent from just 8 percent in 2012’s survey. Most relationships were already blooming—most said they married a longtime partner.
- Half surveyed said being in a legally recognized same-sex partnership has simplified their finances, up from 13 percent four years ago.
- Income disparities remain. Lesbian women earn less than heterosexual women, reporting an average annual salary of $45,606 vs. $51,461. Gay men reported earning an average of $56,936, with heterosexual men earning $83,469.
- Concerns over legal and institutional barriers to achieving financial goals are strongest among same-sex partners.
- Financial needs for the LGBT community are the same as for the general population, said 46 percent of those surveyed. Meanwhile, 45 percent said they need to follow a different path to meet those same needs.