The financial concern that haunts many LGBTQ Americans
So, what is the biggest financial concern among LGBT Americans? Saving for retirement! Why do LGBT Americans stress about retirement? They have less money coming in and more money going out. Here’s what the LGBT community has to say about stress surrounding retirement.
Lack Of Consistent Employment Kills Earning Potential
There are pockets of America where workplace discrimination is dwindling. For many LGBT Americans, however, discrimination takes a bite out of their annual income. Transgender people have it the worst. According to data from the National Center for Transgender Equality, more than one-in-four transgender individuals report losing a job due to bias.
Having to switch jobs more frequently leads to fewer raises and opportunities for career advancement. This hurts long-term financial goals. It’s hard to stack up 401(k) savings without a consistent gig.
Less Than Stellar Spending Habits
Some of the blame falls on poor spending habits within the community. According to a recent Experian study, nearly a third of LGBT Americans say that they have bad spending habits.
Experian found that LGBT Americans allocate significantly more money to discretionary spending than to saving for retirement. Young LGBT Americans between the age of 25 to 34 admit to having poor spending habits.
Where’s The Family Support?
A significantly higher percentage of LGBT Americans have severed family ties compared to their heterosexual peers. Lack of family support means a lack of a financial safety net. It’s one of the many downsides to being ostracized by your family. To top it all off, most LGBT Americans end up not raising children.
Unstable family life and inconsistent employment can make life more stressful. An easy way to cope is to compensate by spending more on stress-relieving activities. It’s a slippery slope that has had a negative impact on the retirement savings of many LGBT Americans.