Pride Month a reminder for advisors about underserved LGBTQ+ community

Like every June, financial advisors on their way to work will notice a plethora of rainbow flags flying in front of neighborhood homes and businesses in support of Pride Month.

What they should also be seeing is the substantial market opportunity to serve the oft-overlooked financial needs of the LGBTQ+ community.

According to a study from wealth management consultant Alpha FMC titled, “Why LGBTQ+ Finance Is the Next Frontier in Wealth Management,” recent data estimates global LGBTQ+ purchasing power is approximately $4.7 trillion. In the U.S. alone, the community wields an estimated $1.4 trillion in annual spending power, the study said.

Yet despite this economic influence, the Alpha FMC report says most wealth management firms lack inclusive offerings in foundational areas such as estate and legacy planning, retirement readiness tools, and support for family-building expenses such as adoption, IVF, and surrogacy.

Brian Larson, manager of asset & wealth management consulting for Alpha FMC, calls the absence of these tailored solutions a missed market opportunity.

“Structural gaps in estate planning, family-building, retirement, and insurance have persisted because many firms relied on outdated models that assume heteronormative households and binary life paths. What’s changing now is urgency,” Larson said.

According to recent data from the Human Rights Campaign, one in five Gen Z adults identifies as LGBTQ+. As they enter their peak earning years, they bring new expectations around personalization, equity, and values-driven service.

The Human Rights Campaign study also that said 62% of LGBTQ+ individuals report experiencing financial discrimination, while only 15% say they’ve worked with a financial professional who understood their specific needs.

“For today’s firms, inclusion is no longer just a moral imperative, it is s a growth strategy and a litmus test for relevance,” Larson said.

Meet needs, grow business

As a member of the LGBTQ+ community, John Latella, certified financial planner with Prudential Advisors, serves on the board of Safeguarding American Values for Everyone (SAVE), South Florida’s oldest LGBTQ+ advocacy organization. He believes working at that organization keeps him closely connected to the issues faced by that community, while reinforcing the importance of planning.

“Considering our shifting political climate, people are updating wills, reviewing insurance policies, and in some cases, thinking about whether the state they reside in – or even the US – is where they want to live or retire. They are motivated to be proactive, protect themselves and their loved ones, and in turn, their assets,” Latella said.

Latella says the legal realities and potential threats are front and center for many of his LGBTQ+ clients right now. Even though marriage equality is still the law of the land, he feels a growing concern among clients that certain rights could be weakened, especially in states like Florida. As a result, he is proactive in making sure they are not leaving anything to chance in protecting and legally securing their assets.

Latella added there is also increasing concern among his trans clients, who are facing new legal and healthcare restrictions in some states.

“For them, planning often includes strategies for medical access, relocation, and making sure identity documents are consistent and protected. As a financial advisor and through my work with SAVE, I’ve learned that legal protections can shift faster than we imagine. And so, it’s better to be overprepared,” Latella said.

Elsewhere, Beth Bosworth, head of financial planning at Perigon Wealth Management, said one of the primary financial planning concerns of the LGBTQ+ community is that their right to legally marry will be reversed. In her view, this presents a myriad of changes - mostly negative - to the financial plans of her married queer clients. 

“When speaking with my queer, married clients, I recommend seeking legal counsel to prepare estate planning documents that can be enforceable regardless of marital status. Parents in our community should seek custody counsel from an attorney regarding their rights to their children,” Bosworth said, adding that these are costly planning points, and not accessible to all. 

Emphasized Bosworth: “We at Perigon are committed to pro bono financial planning work across the nation through associations such as the Foundation for Financial Planning so I also encourage everyone to seek support through amazing resources that are available.”