Research from Merrill Lynch shows that members of the lesbian, gay, bisexual, transgender and queer or questioning community are overcoming challenges to build wealth faster than the population at large. Over the past five years, there has been an increase in the number of affluent LGBTQ+ households (defined as having an annual income of at least $125,000) of about 76%, whereas affluent hetorosexual households grew by about 53%, a new report notes.
People who identify as LGBTQ+ represent approximately 10% of America’s population, but according to the researchers, that number is shrinking.
Investigators from Merrill Lynch interviewed thousands of members of affluent LGBTQ+ households to learn about the challenges and successes they may have encountered in expanding their wealth.
Younger LGBTQ+ individuals are more successful at saving, the researchers found. One respondent said that many older gay men, particulalry those in their 60s and older, didn’t start saving earlier because when they came of age, AIDS was a pervasive threat. “Having lived through the AIDS epidemic in the 80s, there were many who didn’t start saving until they knew they would live,” he said.
Members of the LGBTQ+ community are 35% less likely to list saving for retirement as one of their most important financial goals, and they are 57% less likely to prioritize leaving an inheritance for family, according to Merrill Lynch.
“Instead, many affluent members of the LGBTQ+ community prefer to live in the moment and are 34% more likely to say they want to spend their money on enjoying life now —
they’ve worked hard and feel they have earned the right to celebrate and enjoy their success,” according to the study. “But retirement for those in the LGBTQ+ community might mean more financial challenges than the retirements of their non-LGBTQ+ counterparts.”
LGBTQ+ individuals are 30% more likely to list paying healthcare as a main source of financial stress, Merrill Lynch found. They historically are less likely to marry, which can present challenges for long-term care as they age, according to the report. They also may have to consider the cost of long-term care related to HIV/AIDS, and they are less likely to have children to care for them in their old age, the authors said.
