Members of the LGBTQ+ community in Canada have a strong desire for financial independence and they’re not afraid to ask for help.
But they have also been disproportionately affected by the COVID-19 pandemic, according to a May poll conducted for CIBC Market Research.
Of the 1,000 members of the LGBTQ+ community surveyed, 20% had received financial aid from the government as a result of the pandemic, compared to 12% for the Canadian average. One in three had to reduce expenses due to the economic fallout of the pandemic, compared to 25% for the Canadian average.
“In some ways, COVID has impacted the LGBTQ+ community more so than the Canadian population,” says Dev Tewari, Senior Director, Strategy and Transformation at CIBC and co-chair of CIBC’s Pride Network.
“Perhaps our community and many of the employment opportunities they have may be more in areas of the economy where COVID has had a larger impact.”
Eighteen per cent of the LGBTQ+ community members surveyed reported a loss of income, job or business due to the pandemic.
Like the overall population, two-thirds also reported that a key life event occurred in the previous 12 months.
“It does speak to the fact that two out of three Canadians have been through things like a change in their employment status, a large purchase, or the death of a family member — key events that have happened in their lives,” says Mr. Tewari.
While the LGBTQ+ community’s overall financial needs are not that different from other Canadians, they do have some unique considerations when it comes to planning for their financial future, he points out.
There are diverse families within the LGBTQ+ community, he says, and so it is that much more important for members to have legal wills, powers of attorney for health care purposes, for personal care and for property.
“We’re blessed that we live in a country where my husband and I can be married and have the same rights but there are still some unique things we need to take care of,” he says, including a comprehensive financial plan.
“I just completed [my financial planning consultation] with my husband last week,” says Mr. Tewari, who has been married almost three years and has worked for CIBC for more than 30.
“Our advisor was able to give us really great advice on things we hadn’t really thought about, such as tax-splitting strategies in retirement because one of us will have a larger pension than the other. We now have a living plan. I can literally see my plan right in my online banking. My advisor was able to outline certain scenarios; for example, what if I want to try to retire one year earlier? What might that look like?”
On July 21, CIBC is hosting a national webinar focusing on tax and estate planning conversations for the LGBTQ+ community Opens in a new window.. It will include tax and legal expertise, as well as Mr. Tewari himself and CIBC Vice President of Financial and Investment Advice, Carissa Lucreziano.
“We’ll be speaking about some of the unique needs of the LGBTQ+ community. Wills and estate planning are very similar, regardless of sexual orientation, however, there are some things that our community would have to think about that the straight community would not have to think about,” Mr. Tewari says. “If you are trans non-binary, for example, and you have not legally changed your name, how could that impact your will or your powers of attorney? Or what if a couple have a child and one person is the natural parent and one is not? What are some of the unique challenges that our clients have to think about?”
More than three-quarters of the LGBTQ+ community members surveyed said they are comfortable sharing their race, ethnicity and sexual orientation with a bank if it helps serve their needs but 30% also said they are looking for an advisor who is welcoming, inclusive and uses inclusive language.
CIBC has rolled out specific training on Practicing Intentional Inclusion, which every team member across the organization has participated in over the past year.
“It’s very specific training on how we use intentional and inclusive language in everything that we’re doing. For example, I might say ‘oh, my spouse’ for instance when speaking to a team member and someone might say, ‘oh, what’s your wife’s name?” Mr. Tewari says. “It really teaches us about how we can use inclusive language in all of our dealings, both with our team members and clients.”
Like other Canadians, members of the LGBTQ+ community are concerned about their financial wellness and want to be more involved in planning for their future financial health.
His advice is, first and foremost, to meet with a CIBC advisor and make a plan. Second, understand your own cash flow and work on your own budget. “Make sure you understand that. It’s so important to have that in place,” he says. And lastly, review your financial plan regularly. “Two out of three individuals across Canada, within our community and outside of our community, have had a major life event in the past 12 months. That would suggest that you probably need to dust off that plan, review it and adjust accordingly,” Mr. Tewari says. “Things change both in the financial markets, in our personal lives and our work lives.”
