Bridging the financial gap in the LGBTQ+ community

As pride month is upon us, what better time to raise awareness of the financial inequality faced by the LGBTQ+ community, especially when it comes to pensions and retirement planning. 

The reality of the pension gap 

According to a study by YouGov, in partnership with leading LGBTQ organisation Black Pride, 44% of people who identify as LGBTQ+ are not on track for even a basic retirement lifestyle? Compare this to the national average of 35%, and it's clear there's a significant gap.  

Shockingly, this is partly because LGBTQ+ individuals earn, on average, 16% less than straight people. This income gap directly impacts the ability to save for the future, creating a long-term financial disadvantage. 

What’s causing this gap? 

There are several factors at play here. One major issue is workplace inequality. The same study found that only one in eight workplaces currently monitor the pay gap between LGBTQ+ workers and their non-LGBTQ+ peers. Without proper monitoring and action plans, this pay gap remains unaddressed in most workplaces. 

What’s more, a significant number of LGBTQ+ individuals face prejudice at work. Over a fifth of LGBTQ+ respondents reported experiencing verbal abuse in the office, and almost two-thirds admitted they have felt uncomfortable at work. This may explain why a quarter of LGBTQ+ individuals are not open about their sexuality at work, with 28% fearing judgment from colleagues and 14% believing that coming out would hinder their chances of promotion. 

The importance of inclusive policies 

The study also revealed that only 20% of managers have an LGBT action plan to address these inequalities. This lack of structured support means many LGBTQ+ workers experience this discrimination and bullying, further hindering professional and financial growth. 

Frances O’Grady, the TUC General Secretary, stresses the need for specific policies to support LGBTQ+ staff. Without these, LGBTQ+ workers are left vulnerable to various forms of workplace discrimination. Implementing comprehensive policies and monitoring pay gaps are crucial steps towards creating a safe and respectful work environment. 

Steps towards change 

Feeling like you have to conceal your true identity at work is incredibly stressful and can hinder job performance. Steps must be taken to urge organisations to prioritise inclusion and create supportive environments for all employees. This isn't just morally right – it also boosts the bottom line by allowing employees to thrive as their authentic selves. 

Unfortunately, there's still very little awareness around this issue, and not much research has been carried out on the issue. The last substantial data we found was from 2019, five years ago. It's crucial to raise awareness and encourage more studies to understand and address this financial inequality better. 

So, what can you do? If you’re part of the LGBTQ+ community, consider starting a pension if you haven’t already. It’s never too early to think about your retirement. Platforms like Dodl offer a range of investment options to help you build a secure future. Also, if you feel comfortable doing so, advocate for inclusive policies in your workplace if they’re not already in place. And if you're an ally, you can always support your LGBTQ+ colleagues in that endeavour.

Together, we can work towards closing the financial gap and promote a fair and equal future for everyone. 🌈 

🔔 Always remember, the value of your investments can go down as well as up. Dodl doesn’t give advice, so if you’re unsure about investing, it’s always best to speak to a financial adviser. Tax treatment depends on your individual circumstances and rules may change. Pension rules apply.