Pride and Prejudice: Exploring Persistent Wealth Challenges Within the LGBTQ+ Community

Emma Palethorpe from St. James's Place and Matt Cameron from LGBT Great explore some of the persistent challenges that LGBTQ+ people face with wealth accumulation – and what can be done.

As part of their commitment to supporting all clients with every aspect of their financial lives, St. James's Place recognize that people in minority groups often have specific concerns or face particular challenges when it comes to money. For LGBTQ+ people, those range from the higher costs of starting a family to the disproportionate risk of mental- health problems, which can impact earning potential and decision-making around finances. To find out more, two experts, Emma Palethorpe, Head of Change (Asia) at St. James’s Place and Chair of the SJP LGBTQ+ Network, and Matt Cameron, founder and Managing Director of LGBT Great, an advocacy organization and membership community that champions LGBTQ+ equity in the financial-services industry, discuss the topic.

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How might being LGBTQ+ affect people’s financial plans?

Emma: One of the common themes we’ve seen at SJP is around same-sex partnerships. Not marrying will impact your spousal rights in terms of pensions. If one of you dies and you’re not married, the rights to the pension may not get passed across.

Matt: The barriers and challenges that LGBTQ+ people face vary, depending on which part of the community they come from. Meanwhile, other aspects of identity such as race and gender may create additional barriers. For example, I have the benefit of being a white man; I look like the majority of the leadership in the [financial-services] industry. If I was black and trans, I’d very likely be the only one – and we know that has an impact on how we feel. Here in the UK, there’s an issue around inheritance planning. LGBTQ+ couples are less likely to be in civil partnerships or marriages – especially a lot of older LGBTQ+ couples, who don’t want to get married because the institution of marriage has excluded them for so long. So, it’s really important they have a Will [formally leaving assets to their intended beneficiary]. Also, if you’re moving abroad with a spouse to a country that doesn’t recognize same-sex marriage, that can impact on your husband or wife having access to your pension [if you die]. It’s very complex.

What about additional expenses?

Emma: As a same-sex couple, having a family is often more expensive. Whether you go down the IVF or the surrogacy route, you have to factor this into your financial goals and planning.

Matt: If you want to go through surrogacy, chances are it’s