Retirement planning is a vital aspect of financial well-being for everyone, but for members of the LGBTQIA+ community, there are unique challenges that need careful consideration. As told to Financial Adviser PH by Rienzie Biolena, a Registered Financial Planner, same-sex couples must take extra steps to ensure their future financial security due to the lack of legal recognition for same-sex unions in many countries, including the Philippines.
Biolena highlights that same-sex couples often face challenges regarding property rights and familial responsibilities that make retirement planning more complex. He noted, “I had financial consultations with two Lesbian couples…just like any other couple, they had dreams together, plans of having a business and their own home—even marriage and having kids. But the legal framework here in the Philippines still has to acknowledge same-sex unions.” These legal gaps often mean that same-sex couples don’t have the same automatic legal protections as heterosexual couples, which can complicate retirement planning.
Planning for Retirement
One of the first pieces of advice Biolena offers to members of the LGBTQIA+ community is to plan for their own retirement. He stresses, “They should take care of themselves also by planning for their retirement: how would they be taken care of, who shall take care of them, and building their own supplementary retirement fund.” Without a legal spouse to provide support, it’s crucial for individuals in same-sex relationships to set aside funds for their later years, ensuring their comfort and well-being.
Preneed Plans and Insurance
In addition to saving, Biolena recommends considering preneed plans and securing insurance. “Preneed plans are a cost-effective way to hedge against the inflation of memorial services and expenses,” he explains. For individuals supporting elderly parents, a preneed plan can prevent significant financial shocks. Additionally, “To the extent of their financial responsibilities, they should get insurance to ensure that their dependents’ needs would be faithfully sustained even in the event of their death.”
The Power of Trusts
Finally, Biolena highlights the importance of creating trusts. He says, “A Trust is a very flexible and useful financial and legal tool to manage one’s assets and estate.” Trusts allow individuals to manage their properties and designate beneficiaries, ensuring that their wishes are respected, even if they are not legally recognized as a couple.
By taking these steps, members of the LGBTQIA+ community can secure their financial future and protect their assets.
