There are distinct challenges that can affect your financial planning needs such as the legal complexities one has to manoeuvre within. While the legal framework in South Africa is rapidly adapting, much of the advancements have been precipitated by precedent-setting case law, which means that estate planning, tax strategies, and beneficiary nominations can be complicated. These arrangements, therefore, need to be approached with due care and revisited regularly to ensure that they are in line with your wishes as well as current law.
While the diversity and inclusion initiatives adopted by corporates are yielding positive results and bringing about more acceptance of our differences, workplace discrimination is still a reality for many LGBTQIA persons. Discrimination and bias in the workplace can lead to wage gaps, affect career advancement, and therefore, as an example, produce disparities in the value of retirement benefits you can accumulate over time. Like all individuals, it is important therefore to pay close attention to your retirement and broader financial planning to ensure that you are on track to provide sufficiently for your future or unforeseen urgent needs.
Family and social dynamics are additional factors that one cannot ignore. As an LGBTQIA individual, you may face rejection or have strained relationships with your family, thus affecting your financial support systems and inheritance planning.
Other important considerations are your unique life events which may not always be readily accommodated by current products or solutions in the market.
If starting a family and having children through adoption or surrogacy is one of your goals, then adequate pre-planning, including being financially ready, is a necessity. While adoption can be relatively inexpensive, surrogacy on the other hand can be costly, as one needs to consider the costs of having the appropriate legal agreements drafted as well as the legal processes that need to be followed. You would also need to be prepared to cover medical aid and other medical costs related to surrogacy.
Personal medical costs related to gender transition and reassignment are not comprehensively covered by medical aid schemes at present. The current landscape, therefore, requires one to use their resources and emphasises the need to plan well ahead of time for such life transitions.
Key Considerations for Financial Planning and Wealth Management
- Seek appropriate advice:
- Estate Planning and Asset Protection:
- Retirement and Investment Strategies:
- Insurance Needs:
- Philanthropy and Charitable Giving:
While strides have been made to bring about more social acceptance and inclusion of the LGBTQIA community, a more deliberate effort is still required to ensure that your wealth management arrangements are indeed aligned with your aspirations and wishes.
By partnering with knowledgeable advisers who understand these challenges, appropriate strategies can be tailored to your specific needs. A comprehensive approach that encompasses estate planning, retirement strategies, insurance needs, and philanthropy can pave the way for a secure financial future, while also empowering individuals to live authentically and thrive in all areas of their lives.
* Dube is a certified financial planner and director and Wealth Manager at Wealth Creed. She is the Financial Planning Institute of Southern Africa Financial Planner of the Year 2022
** The views expressed do not necessarily reflect the views of Independent Media or its sister publications.
PERSONAL FINANCE