The ultimate financial planning guide for LGBTQIA+ couples

This is summarised version of our incredible Includability Committed Employer, Unividual's feature: The ultimate financial planning guide for LGBTQIA+ couples

By Cherie-Anne Baxter-Blyth, Marketing Strategy Director at Unividual

The link to the full guide can be found at the bottom of this article.

‍

The ultimate financial planning guide for LGBTQIA+ couples

Navigating your financial landscape is crucial and the financial services industry hasn't always catered for everyone. At Unividual, we’re committed to offering a supportive environment where everyone can access bespoke financial advice. This guide is tailored to address the unique financial challenges and opportunities faced by LGBTQIA+ people, backed by real-life data and expert insights.

Create a joint financial strategy

Joining finances is a significant commitment and it is full of emotional and practical considerations. This process can be even more complex for LGBTQIA+ couples due to unique socio-economic factors. A 2023 Experian study found that nearly 65% of LGBTQ+ individuals admitted to having “bad spending habits”, underscoring the need for tailored budgeting strategies. like housing, groceries, and utilities.

Put aside 30% of income for wants: Discretionary spending on dining out, travel, and entertainment.

Put away 20% for savings: Important for future goals and unexpected needs.

This approach helps manage finances efficiently, proactively and builds a foundation for discussing and respecting individual spending habits.

Setting shared financial goals

Aligning financial goals is a critical step towards a harmonious relationship and effective money management. A goal setting exercise will ensure you move in the same direction and it also fosters a sense of partnership. It is important you only do this when you are ready to share, but here are a few pointers to get you started:

1. Open communication about finances

2. Identify common goals‍

3. Create a financial plan‍

4. Leverage financial advising

5. Plan for contingencies

Homeownership challenges for LGBTQIA+ couples

Homeownership is a cornerstone of financial security and a common aspiration for many of us in the UK, however achieving this goal can be particularly challenging because of the discrimination, indirect or direct, LGBTQIA+ individuals face in the housing market. Despite legal protections, issues still surface in subtle and overt ways during the home-buying process, perhaps from sellers, estate agents or even future neighbours.

TOP SAVINGS TIP FOR HOMEBUYERS: It’s also important for couples to plan for ongoing costs such as property taxes, home insurance, and maintenance. Don’t forget these hidden costs, they mount up, and you don’t want to take on further debt on top of your mortgage because you didn’t know to plan for this.

Crucial financial protection strategies for LGBTQIA+ Couples

Financial planning is not just about growing your pot of money, it’s also about protecting your wealth. This means having a plan that covers all eventualities, from separation to the untimely death of a partner along with comprehensive insurance cover. Important areas to consider are:

Life insurance

Critical illness cover

Income protection

Mortgage protection

Navigating separation

Essential estate planning to protect your partner

The landscape of legal rights is complex and ever-changing so protecting your interests, can ensure your rights and relationships are recognised and respected. Here are 6 essential considerations for estate planning:

Wills

Powers of Attorney

Trusts

Tax Considerations

Prioritising retirement savings

Retirement planning is a critical aspect of financial security. You might not be able to rely on substantial support from family in your later years. Over half (55 per cent) of individuals who identify as LGBTQIA+ are on track for a retirement lifestyle below the Pensions and Lifetime Savings Association’s (PLSA) minimum standard, compared to 35 per cent of the general population, research from Scottish Widows has revealed.

‍

See the full article - https://unividual.co.uk/financial-guides/financial-planning-for-lgbtqia-couples/