Slideshow How LGBT clients’ planning needs are changing

Published
  • July 06 2016, 2:40pm EDT
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Helping LGBT clients identify their financial goals

Lesbian, gay, bisexual and transgender rights have advanced substantially in recent years, particularly following the Supreme Court's decision in favor of marriage equality. But, when it comes to financial planning, LGBT clients are still lagging behind the general population.

Many LGBT individuals have put too few assets aside for retirement, and in some cases have done no retirement planning at all, according to a recent study by Prudential Financial. Worse, young LGBT clients aren't even sure how best to get started, the study says.

Advisers can bridge the gap, but will need a better understanding of the financial health, priorities and aspirations of LGBT clients in order to do so.

Click through our slideshow to learn more about their unique needs.

Back to basics

Young LGBT clients report being on shaky ground when it comes to allocating their assets — and they want help, according to Prudential's study.

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Income inequality

Lesbians' average income is lower than that of gay men — mirroring a similar gap between heterosexual women and men, according to Prudential's study.

Big spenders

LGBT clients say they want to put more funds aside for their retirement and other savings — and in this they are not alone. Their heterosexual counterparts currently allocate 25% of their income to savings, retirement and other accounts, but want the figure to be closer to 40%, according to Prudential.

Pay scale

Meanwhile, there’s been a spike in lower income households. Prudential says its study showed that the number of single LGBT individuals making $15,000 or less jumped from 12% of all such households in 2012, to 23% in 2016.

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Financial education

For each of these goals, LGBT clients reported feeling less well prepared than their heterosexual counterparts, per the study.

Financial concerns

More LGBT clients reported being concerned about these leading issues than heterosexual clients, according to the study.