You might not think that who you love would have financial ramifications, but it certainly does.
About 9% of Americans identify as LGBTQ+, according to a Gallup survey—and not only do they face the same financial challenges as the rest of society, but there are also specific planning areas that need attention.
Those include location, and which parts of the country offer sufficient safety and legal protections and healthcare access; family-related costs, like adoption or surrogacy; and tax and estate planning issues, since treatment of the LGBTQ+ community can vary significantly by jurisdiction.
A few questions to consider when charting the right financial path for you:
What might family-building costs look like?
Adoption is a wonderful thing for would-be parents and for children who need families, but it's not cheap. The process is intensive, and the costs involved can easily run into the tens of thousands of dollars.
In vitro fertilization for one partner is another route, and one cycle could cost $15,000-$30,000 (with couples sometimes going through multiple cycles). Surrogacy is an option as well, and is even more financially demanding, with costs ranging from $120,000-$180,000.
The good news is more companies than ever are offering such services as part of their benefits menus—42% are offering fertility-related benefits, and 20% are financially assisting the adoption process, according to the Society for Human Resource Management.
How can I deal with retirement insecurity?
According to one survey from the Transamerica Center for Retirement Studies, only 58% of LGBTQ+ respondents were confident they will retire comfortably, versus 67% of the rest of the population. They report lower incomes and assets, and higher levels of debt, according to the Employee Benefit Research Institute.
That is partially attributable to social marginalization, and the nation's long history of discrimination against the community, which has affected hiring and promotion. The Human Rights Campaign Foundation found that almost half (48%) of LGBTQ+ adults reported being "financially unwell," almost double that of the general public.
What should I know about estate planning and taxes?
Married same-sex couples are treated no differently taxwise than traditional unions, under the Supreme Court's Obergefell decision. But tax treatment is not uniform across the country when it comes to domestic partners or civil unions, so it would be wise to be fully apprised of local laws in consultation with qualified professionals.
Estate planning should be an area of particular concern, if you want affairs handled by a partner as opposed to a biological relative. That might apply to areas like healthcare directives, power of attorney, wills and trusts, and account beneficiaries. Merrill Lynch compiles a comprehensive guide for the community here.
What areas of the country are the most LGBTQ-friendly?
The reality is that some parts of the country are more open to the LGBTQ+ community than others. In terms of being a desirable place to grow a family, develop a career, and enjoy full legal protections, that could factor into decision-making about where to set roots. The highest-ranking states on one equality index are Massachusetts, Washington, D.C., Vermont, Connecticut, and New Hampshire.