The value of financial advice to the LGBTQ+ community

Financial planning advice can provide significant benefits to everyone. In particular, by supporting members of the LGBTQ+ community with tailored financial planning strategies that may help address some specific and additional considerations.

3 mins

Financial issues facing the community may include:

  1. Funding the costs of adoption and family planning: Those interested in adoption or surrogacy may require financial planning advice to help cover the associated costs. Unlike heterosexual couples, same-sex couples often must demonstrate their infertility before the NHS will fund IVF, paying privately for between three and 12 rounds of artificial insemination. They may also need to find and fund surrogate sperm/egg donors. Advice can help create savings strategies and budget plans to support these goals.

  2. Socially Responsible Investing: Financial planning can incorporate values-based investing, which may be particularly relevant to the LGBTQ+ community. Where possible, advisors can help individuals align their investments with their social and ethical values.

  3. Legal and Estate Planning: Many LGBTQ+ individuals and couples face unique legal challenges, particularly in areas related to estate planning, inheritance, and healthcare decision-making. Professional advisors can help to ensure that wills, trusts, and other legal documents are in place to protect the financial interests and well-being of partners and chosen family members.

  4. Marriage and Civil Partnership Planning: The legal landscape for same-sex partnerships has evolved, including marriage and civil partnership rights. Financial advice can help LGBTQ+ couples navigate the financial implications of these legal changes, such as tax implications, pension benefits, and inheritance rights. Equally, they can highlight which benefits or rights may be lost to those who are not married or in a civil partnership.

  5. Tax Efficiency: Financial planning can help members of the community optimise their tax situation. This might involve strategies like joint tax returns, making the most of available tax allowances, and understanding how tax rules apply to diverse family structures.

  6. Pension and Retirement Planning: Many LGBTQ+ individuals have unique career paths and family structures that can impact retirement planning. Advisors can help navigate options for pension planning, survivor benefits, and retirement income strategies that align with individual needs.

  7. Healthcare Costs and Insurance: Members of the community might have specific healthcare needs that require financial planning. Advisors can help with health insurance decisions, planning for potential medical expenses, and understanding how to utilize available healthcare resources effectively.

  8. Debt Management: Individuals may face additional financial stressors due to societal discrimination or coming out experiences. Financial advisors can assist with managing and reducing debt, setting up repayment plans, and providing strategies for improving credit scores.

  9. Emergency Fund and Safety Net: Financial advisors stress the importance of building an emergency fund, which can provide a safety net during unexpected life events. This advice can be especially crucial for those who might face potential loss of financial assistance from unsupportive family members.

The aim of good financial advice is to build meaningful relationships between an adviser and their client. By understanding a clients’ specific goals and aspirations, allied to any difficulties they may face, an adviser can provide tailored support and help them to realise their financial objectives.

For the LGBTQ+ community this may revolve around creating tailored strategies that address unique challenges, promote financial security, and empower individuals to make informed financial decisions that align with their personal and family goals.

Please note: This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate advice on taxation, trusts, estate planning, and will writing.