Majority of LGBT Americans indicate changes to marriage landscape has altered how they think and plan for their future; more education needed
A new survey from Wells Fargo & Company of Lesbian, Gay, Bisexual and
Transgender (LGBT) Americans sheds light on how marriage equality is
shaping the attitudes, behaviors, and conversations of same-sex couples
related to money and planning for their future. The majority of LGBT
Americans surveyed (86%) say that marriage-equality will improve the
financial lives of same-sex couples, with 50% citing financial security
and benefits as a top reason for wanting to get married ( love and
commitment tops the list at 86%).
Marriage Changes How Couples Think About Finances
The survey included an oversample of LGBT Americans currently in
same-sex marriages (living in states that recognized same-sex marriage
before the federal ruling) to explore the impacts so far of legalized
marriage. Seven in ten (70%) say they feel better off financially.
Moreover, legalized marriage has changed how many think, feel, and talk
about their lives:
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Seventy-three percent say that same-sex marriage becoming legal has
changed how they plan for their future.
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Sixty-eight percent say that being married has changed how they think
about their financial future, specifically.
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Sixty percent say that being married has changed how they are planning
for their financial future.
“The decision to marry seems to bring with it a level of financial
security for same-sex couples,” said John Lake, Wells Fargo LGBT Segment
Manager. “While LGBT Americans recognize that access to marriage
provides certain financial benefits and obligations, there is still a
significant knowledge gap around specific issues.”
The survey showed that 81% of LGBT Americans see getting married as a
big financial decision, and almost nine in 10 (89%) say it’s important
to evaluate the financial implications of getting married before doing
so. However, just one in three (32%) say they fully understand the
financial implications of doing so, and even fewer (29%) fully
understand how Federal and state laws apply to same-sex marriages in
their states. Likewise, most survey respondents do not fully understand
all the legal implications of being married versus living together in
several specific areas related to money and planning. For example:
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Seventy-five percent do not fully understand how legal marriage
affects access and rights to workplace pension benefits.
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Seventy-two percent do not fully understand how legal marriage affects
rights to inherit money from a spouse.
There remains a strong need for financial planning work and increased
education. While almost half (48%) of LGBT Americans in same-sex
marriages have a financial advisor (compared to 23% of U.S. married
couples), less than one in five (18%) consulted with a financial or
legal professional before getting married. Now that they are married,
56% say they have lot of financial planning work to do. Most LGBT
Americans in same-sex marriages (54%) say that being married makes
talking about money easier. Still, almost one in five (19%) have
disagreements about money at least monthly, and 30% admit that
discussions about finances have caused tension in their relationships.
Before Saying “I Do”
Among same-sex couples considering marriage, the need for advice is
strong. Forty-seven percent feel unsure whether legal marriage would be
financially beneficial for them or not, and 52% do not feel
fully-prepared to make an informed financial decision about whether or
not to marry. Only one in four (25%) have fully discussed with their
partners whether marriage would be a good financial decision or a bad
one.
The need for more conversations about money also resonated throughout
the survey on a variety of issues LGBT Americans consider important to
discuss before marriage. Fewer than one-third, for example, have fully
discussed:
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Whether to merge all of their accounts and assets (30%)
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Their personal feelings and views about money (28%)
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Personal debts and how marriage brings joint obligations (27%)
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What they want to save or invest for (24%)
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How much each partner can, will, and wants to earn (23%)
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Their mutual risk tolerance with savings and investments (18%)
“Having conversations about financial issues like saving, investing, and
preparing for retirement is critically important for same-sex couples.
There are many unanswered questions out there, and as an industry we
must keep working hard to provide useful information same-sex couples
need in order to achieve their financial goals,” Lake added.
Wells Fargo Advisors – Accredited Domestic Partnership Advisor (ADPA)
Program
The Accredited Domestic Partnership Advisor (ADPA) program was created,
through a partnership with the College for Financial Planning, to
educate advisors about the unique needs and financial considerations of
same-sex couples and domestic partners. Financial advisors who earn this
designation are well equipped to work with domestic partners and
lesbian, gay, bisexual, and transgender (LGBT) clients to develop a
thoughtful approach to help identify and work toward their financial
goals. Wells Fargo Advisors created ADPA in conjunction with the College
for Financial Planning. Today, Wells Fargo Advisors has more than 100
ADPA-certified financial advisors nationwide, more than any other firm
in the country. For more information on financial services offered to
LGBT individuals and couples, please visit www.wellsfargo.com/lgbt.
About the Survey
Versta Research conducted an online national survey for Wells Fargo
among 1,152 LGBT (Lesbian, Gay, Bisexual, or Transgender) Americans
between April 8 and April 25, 2015. Qualified respondents were
non-students, ages 25–75, who are the primary or joint financial
decision-maker in the household. The sample included 207 who are in
same-sex marriages and 301 who are in same-sex civil unions or domestic
partnerships or who live with a same-sex partner. Data were weighted to
reflect the overall LGBT population in the U.S. based on LGBT and
same-sex relationship status. The survey also included a similar
national comparison sample of 360 Americans, weighted to reflect current
Census data for gender, age, race, ethnicity, household income, and
region. Assuming no sample bias, the maximum margin of error is ±3% for
the LGBT sample and ±5% for the full U.S. sample.
About Versta Research
Versta Research is a full-service market research firm, headquartered in
Chicago, IL, specializing in customized strategic market research and
public opinion polling. For more information, visit www.VerstaResearch.com.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified,
community-based financial services company with $1.7 trillion in assets.
Founded in 1852 and headquartered in San Francisco, Wells Fargo provides
banking, insurance, investments, mortgage, and consumer and commercial
finance through more than 8,700 locations, 12,500 ATMs, and the internet
(wellsfargo.com), and mobile banking, and has offices in 36 countries to
support customers who conduct business in the global economy. With
approximately 266,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 30
on Fortune’s 2015 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy all our customers’ financial needs and help
them succeed financially. Wells Fargo perspectives are also available at Wells
Fargo Blogs and Wells
Fargo Stories.
