CFP Board Survey: LGBTQ+ Investors Report Feeling Financially Secure

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CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS, INC

Nov 13, 2023, 14:00 ET

81% of Married LGBTQ+ Investors See Positive Financial Impact From Marital Status

WASHINGTON, Nov. 13, 2023 /PRNewswire/ -- 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 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.

METHODOLOGY
Two surveys fielded over a brief period in October 2023 informed these findings. The first survey of 994 LGBTQ+ adults in the U.S. was commissioned by CFP Board and conducted online by Censuswide. It was weighted to be nationally representative for age, household income and ethnicity. Results from this survey have a margin of error of plus or minus 3 percentage points. The second survey of 261 CFP^® professionals was conducted online. Results from this survey have a margin of error of plus or minus 6 percentage points. For both surveys, respondents filled out an online questionnaire. The findings were originally presented to attendees at CFP Board Center for Financial Planning's sixth annual Diversity Summit in Washington, D.C., on November 9.

ABOUT CFP BOARD
CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public's benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER^™ certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP^® certification is held by nearly 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession's body of knowledge.

SOURCE CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS, INC