The Hidden Financial Challenges Faced by the LGBTQ+ Community
While progress has been made (albeit slowly) in advancing the rights of our LGBTQ+ brothers and sisters, many individuals in the community continue to face challenges that largely go unnoticed, especially in finance.
From discrimination in the workplace to a lack of financial planning resources, the financial hurdles facing the community can have lasting effects on personal well-being and future financial security. Throughout the year, Oakview Wealth Solutions practices allyship in support of our friends and loved ones who are included in the LGTBQ+ community, and in honor of PRIDE MONTH we want to talk about 5 financial challenges impacting the LGTBQ+ community. We will shed light on the unique obstacles faced and provide insights into navigating these challenges.
Lack of legal protections
One of the biggest financial challenges faced by the LGBTQ+ community is the lack of legal protections. Even though many countries have made strides in legalizing same-sex marriage and enacting anti-discrimination laws, the LGBTQ+ community is still vulnerable to discrimination in areas such as employment, housing, and public accommodations. This means that LGBTQ+ individuals are more likely to experience financial setbacks due to discrimination and lost opportunities. Additionally, legal protections such as inheritance rights, joint tax returns, and Social Security benefits are often not available to LGBTQ+ couples, leading to financial instability in retirement and during unforeseen emergencies. The lack of legal protections can also impact the ability of LGBTQ+ individuals to secure loans and obtain credit, further exacerbating financial challenges. It is important for society to continue to work towards full legal protections for the LGBTQ+ community so that they can achieve financial stability and security. One way to protect yourself if you are an unmarried person who identifies as LGBTQ+ is to make sure you have legal protections in place to honor both your living and after-life wishes. This should be done by speaking with an attorney who can recommend the best path for you, whether it is a medical Power of Attorney, a solid Will, or a Trust that lists out all of your wishes.
Wage disparities
The LGBTQ+ community also experiences significant wage disparities in the workforce. Research has shown that LGBTQ+ individuals are often paid less than their non-LGBTQ+ peers, despite having comparable levels of education and experience. This can be attributed to a range of factors, including discrimination, workplace bias, and job segregation.
Furthermore, transgender individuals experience, particularly acute wage disparities. In a study conducted by the National LGBTQ Task Force, transgender workers reported an average income of $10,000 less than non-transgender workers. These disparities not only affect an individual's financial stability but can also hinder their ability to achieve long-term financial goals like buying a home or saving for retirement.
To address this issue, lawmakers are exploring various policies such as banning discrimination against LGBTQ+ employees in the workplace, implementing diversity and inclusion initiatives, and mandating equal pay for equal work. Employers also play a critical role in combating wage disparities, through practices like offering fair and transparent salary negotiations, creating diverse hiring practices, and promoting inclusivity and equality in the workplace. By taking these steps, we can ensure that everyone, regardless of their sexual orientation or gender identity, (or skin color for that matter) has the opportunity to thrive financially.
Healthcare costs
Access to healthcare is essential for everyone's well-being, but the LGBTQ+ community faces additional financial burdens when it comes to healthcare costs. Firstly, LGBTQ+ individuals are more likely to experience discrimination and lack of access to healthcare. This leads to a delay in seeking medical treatment and poorer health outcomes. Furthermore, gender-affirming healthcare for transgender individuals can be incredibly expensive. Hormone therapy, surgery, and other medical procedures related to transitioning can cost thousands of dollars, with insurance companies often not covering these expenses. This leaves many individuals to pay for these costs out of pocket, causing financial strain and, in some cases, preventing them from accessing necessary healthcare. Lastly, LGBTQ+ individuals are more likely to face mental health challenges, such as depression and anxiety, due to societal discrimination and stigma. Seeking mental health treatment, including therapy and medication, can also be costly, especially if insurance companies do not cover these services.
Overall, healthcare costs can be a significant financial burden for the LGBTQ+ community. Access to affordable and non-discriminatory healthcare is crucial to improving their well-being and reducing financial stress.
Higher rates of debt and poverty
Another financial challenge faced by the LGBTQ+ community is the higher rates of debt and poverty. According to the Williams Institute, nearly one in three LGBTQ+ people live in poverty, compared to one in five non-LGBTQ+ people. This disparity is even greater for transgender people and people of color within the community. Additionally, LGBTQ+ individuals may face barriers to accessing financial resources, such as loans or credit, due to discrimination and lack of legal protections. This can lead to higher levels of debt, particularly for those who have faced employment discrimination or difficulty accessing affordable healthcare.
Moreover, the higher rates of poverty and debt can further exacerbate the economic and social disparities faced by the community. It can lead to a lack of access to basic needs such as food, housing, and education. Overall, the higher rates of debt and poverty faced by the LGBTQ+ community highlight the need for policies and resources that address the underlying inequalities and discrimination faced by the community. This includes access to fair and equal employment opportunities, affordable healthcare, and legal protections against discrimination. By addressing these systemic issues, we can work towards creating a more equitable society for all.
Family planning expenses and discrimination
The cost of family planning, whether it be through adoption or assisted reproductive technology, can be significant for LGBTQ+ individuals and couples. Adoption fees, legal fees, and medical expenses associated with in vitro fertilization and surrogacy can easily reach tens of thousands of dollars. These costs can be a significant barrier to starting a family, especially for those who already face financial challenges due to wage disparities and discrimination.
Additionally, LGBTQ+ individuals may also face discrimination when trying to start a family. For example, a same-sex couple may have difficulty finding a fertility clinic or adoption agency that is willing to work with them. Even when they do find a provider, they may encounter additional fees or roadblocks simply because of their sexual orientation or gender identity. These challenges make the already difficult process of family planning even more stressful and costly.
One way to combat these challenges is to seek out LGBTQ+-friendly providers and organizations. Many clinics and agencies have taken steps to ensure that they are inclusive and welcoming to all individuals and families, regardless of sexual orientation or gender identity. It may also be helpful to explore resources such as grants and scholarships that can help offset the cost of family planning expenses.
Overall, the cost of family planning and the discrimination that LGBTQ+ individuals may face while out in the world can be significant. It's important to recognize these challenges and work to address them through advocacy and support for inclusive policies and organizations. By doing so, we can help ensure that all individuals and families have the resources and support they need to live a happy, healthy, and financially secure life.
- Sylvia McCormick Burns, co-founder Oakview Wealth Solutions
