Survey Says! Gay Community in Good Financial Health
The survey also found the LGBT community tends to own three core financial products – life insurance, an employer-sponsored retirement account and a savings account – and adds to these products as they age, become parents or establish long-term partnerships. Overall, more than half own a life insurance policy, with almost two-thirds of legally recognized couples having a policy. In contrast to the general population, lesbians are as likely to own life insurance as their male counterparts. Close to a quarter of Boomers own individual stocks, and 10 percent of legally recognized couples own annuities.
Close to 4-in-10 LGBT individuals and nearly half of LGBT couples in a legally recognized relationship work with a financial professional, similar to the general population. Underscoring financial planning challenges related to the legal status of relationships, 61 percent of LGBT individuals see their financial planning needs to be different from the general population. Although the LGBT community does not need financial professionals to be part of the community, 75 percent say it is important that a financial professional understands the unique needs of the community. Despite this, almost nine out of 10 LGBT individuals say they have never had a financial professional contact them about their specific LGBT financial planning needs.
“We recognize that the LGBT community faces a number of unique challenges when it comes to financial planning,” says Sharon Taylor, senior vice president, Human Resources. “We hope that the insights from the study will enable both Prudential and the financial services industry to better meet the LGBT community’s financial needs.”
At a time when Baby Boomers are retiring in significant numbers, the top financial concern among the LGBT community is retirement. While most LGBT Baby Boomers describe themselves as financially secure, approximately one-third say they are falling behind or on the edge financially, and almost half are not confident that they will not outlive their savings or be able to maintain their standard of living in retirement.
“The LGBT Financial Experience” also highlighted one of the key drivers of concern about retirement – the legal status of LGBT relationships, which can have a significant impact on financial planning. LGBT respondents report being very concerned about the lack of Social Security or pension survivor benefits for same-sex couples, as well as legislation that negatively affects LGBT rights. Tax treatment, benefit inequality and inheritance rules for same-sex couples closely follow as major issues.
“The LGBT Financial Experience” 2012-2013 Prudential Research Study was conducted by Community Marketing Inc. of San Francisco, Calif., which surveyed a diverse group of 1,401 Lesbian, Gay, Bisexual and Transgender (LGBT) Americans aged 25-68 from urban, suburban and rural communities throughout the 50 states in August 2012. No income or other criteria were required to participate.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.
Source: Business Wire
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