Federal Reserve: LGBTQ+ People in U.S. Less Likely to Be Doing Okay Financially

Earlier this month, the Federal Reserve released its annual report about the financial well-being of people in the United States, the “Economic Well-Being of U.S. Households in 2021.” The report discusses consumer responses to a survey about their financial situation and experiences, including credit access and behaviors, savings, retirement, economic insecurity, education, and student loans. The authors include two notable references to the financial well-being of LGBTQ+ households in the U.S.

The report finds that in 2021, only two-thirds of adults identifying as LGBTQ+ were doing at least okay financially (67%) compared to more than three-quarters (78%) of the overall population. This is down a percentage point from 2020. Trans & nonbinary people and those who identified their sexuality as something other than straight, gay, or bisexual were even less likely to say they were at least doing okay: only 62% said that they were at least doing okay financially

At Least Doing Okay Financially

LGBTQ+ Households
At Least Doing Okay 66%
Non-LGBTQ+ Households
At Least Doing Okay 79%

Source: Federal Reserve, Economic Well-Being of U.S. Households in 2021 (May 2022)

Additionally, the Fed’s report finds that in 2021 that LGBTQ+ adults were less likely to report high life satisfaction than non-LGBTQ+ adults. Less than half of LGBTQ+ adults reported high life satisfaction (46%), as compared to 60% of non-LGBTQ+ adults. The authors observe that life satisfaction was strongly associated with income, with large differences based on education, disability status, and LGBTQ+ identification.

Has High Life Satisfaction

LGBTQ+ Households
High Life Satisfaction 46%
Non-LGBTQ+ Households
High Life Satisfaction 60%

Source: Federal Reserve, Economic Well-Being of U.S. Households in 2021 (May 2022)

The Fed’s findings show additional evidence that LGBTQ+ households and communities continue to face persisting economic barriers and suffer financial disparities as compared to non-LGBTQ+ people in the United States.

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