New study busts myths of LBGT financial instability

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According to a recent study preformed by Prudential, the lesbian, gay, bisexual, and transgendered communities are better off financially, on average, than most other American people.

What is known as “The LGBT Financial Experience,” the study aimed to bust myths about the financial stability of LGBT Americans.

“We explored the financial landscape for the LGBT Americans to better understand the financial challenges and concerns of the community as a whole, as well as same-sex couples and LGBT parents,” said Charles Lowrey, chief operating officer of U.S. Businesses, to Prudential News.

As of now, there are nine states that legally recognize and allow gay marriage. These states are Connecticut, Iowa, Maine, Maryland, Massachusetts, New Hampshire, New York, Washington, and Virginia, plus Washington, D.C.

The results of the study showed that the average LGBT household earns $61,500 annually. This number is about $10,000 above the average national household income. The unemployment rate is also lower, with only 7 percent of the gay community without a job. The national average for unemployment is currently 7.9 percent.

For this study, Prudential created what was called the Prudential LGBT Financial Confidence Index. This index was a 10-question survey that asked the participants to rank given questions on a scale of 0-10. The results found that the gay community was moderately confident about their finances, with gay men more confident than lesbians and Gen Y’s more confident than Baby boomers.

It also found that the LGBT community was less confident to make well-informed and wise financial decisions. This stemmed directly from a variety of complicated legal, financial and social reasons.

Prudentials study investigated six different areas of the LGBT community, including financial confidence, dynamics, finances, retirement, product ownership, and financial services.

The sample size was 1,401 LBGT Americans ages 25-68. From this, 49 percent of the participants were single, 7 percent were recognized legally as in a relationship and 34 percent were living together with no legal recognition. The study covered all 50 states with the top five responding states being California (15 percent), Texas (8 percent), Florida (7 percent), New York (7 percent), and Illinois (5 percent).

For more information, visit Prudential’s website to get more in depth knowledge about the study.

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