Celebrating Pride & Financial Security: Essential Planning for LGBTQ+ Couples in Singapore

As we celebrate Pride Month, it's a powerful reminder of the journey towards equality and inclusion, not just in society, but in every aspect of life – including financial well-being. For LGBTQ+ couples in Singapore, building a secure financial future often requires navigating unique considerations. At TallRock Capital, we believe true financial freedom means everyone feels welcome, appreciated, and heard.

Our commitment to diversity and inclusion is at the heart of our practice. We are proud to have been recognized for this dedication, winning the Excellence in Diversity award at the International Adviser Best Practice Awards for both 2021 and 2022. This recognition fuels our passion for providing tailored, insightful financial guidance to the LGBTQ+ community in Singapore—both locals and expats—ensuring your financial world truly serves your shared aspirations and long-term well-being.

Workplace & Career Planning: Building Your Foundation with Confidence

For LGBTQ+ employees in Singapore, thinking strategically about career and workplace finances is a critical step in building a secure foundation. While Singapore has progressed with the repeal of Section 377A, explicit legal protections against discrimination based on sexual orientation in employment aren't broadly legislated. This means a proactive approach to financial resilience is key.

• Building a Stronger Safety Net: Some LGBTQ+ individuals may experience subtle biases or slower career progression in certain sectors, which can impact earning potential over time. This underscores the importance of building a robust emergency fund – perhaps a larger buffer than typically recommended – to provide greater security against unexpected career shifts.

• Deciphering Employee Benefits: It's crucial to thoroughly review your employer's benefits package. Understand precisely what medical insurance, life insurance, and other benefits can extend to your non-legally recognised partner and any children. Policies can vary significantly between companies, so clarity on spousal and dependent coverage is essential.

Retirement Planning: Securing Your Shared Golden Years

Planning for retirement as an LGBTQ+ couple in Singapore requires careful foresight, primarily because same-sex marriages are not legally recognized. This non-recognition has direct implications for accessing benefits often automatically available to legally married spouses.

• CPF Nominations: Essential for Your Partner: Unlike married couples whose CPF savings may automatically pass to their spouse (under certain conditions) in the absence of a will, for unmarried LGBTQ+ couples, specific CPF nominations are absolutely crucial. Without a valid nomination, your CPF savings would be distributed according to intestacy laws, which may not align with your wishes for your partner. Make sure your nominations reflect your true intentions.

• Pension & Employer Benefits: If either partner has a pension or other employer-provided retirement benefits, it's vital to clarify how these benefits are structured and if they can be nominated to a non-legally recognised partner. This varies by employer and scheme, so direct inquiry and careful planning are key.

• Long-Term Care Planning: Given the potential for non-traditional family support networks, planning for long-term care becomes even more critical. Explore options like long-term care insurance and ensure your financial plan adequately covers potential care costs in later life. This offers peace of mind, knowing you won't be a burden on your partner or chosen family, and that your care preferences can be respected.

Family Planning: Investing in Your Future Together

For LGBTQ+ couples looking to build a family in Singapore, the journey can involve unique financial, legal, and emotional considerations. Options like IVF, adoption, and surrogacy (where legally permissible) come with specific costs and processes.

• Understanding Financial Commitments: Research the full financial implications associated with various family-building pathways in Singapore, including medical procedures, legal fees for adoption or parental recognition, and agency fees. These can be substantial and require dedicated, long-term financial planning.

• Securing Legal Parentage: If a child is born, ensuring both parents are legally recognised is paramount. This may involve specific legal procedures, such as adoption (e.g., step-parent adoption in some cases), to secure legal rights for both parents. This step is vital for inheritance, medical decision-making, and general parental rights, and carries significant financial and emotional weight if not properly planned.

Estate Planning: Protecting Your Legacy and Loved Ones

Perhaps nowhere is diligent financial planning more critical for LGBTQ+ couples in Singapore than in estate planning. Without legal marital recognition, your wishes for your partner may not be automatically honoured by intestacy laws.

• The Power of a Will: Your Voice Beyond Life: This is the cornerstone of your estate plan. A legally valid will ensures your assets are distributed exactly as you intend, safeguarding your partner's financial security and other chosen beneficiaries. Without a will, your estate would be subject to intestacy laws, which often do not recognise unmarried partners, potentially leading to unintended outcomes and distress.

• Trusts for Flexibility: For more complex situations, or if you wish to provide for your partner with specific conditions (e.g., ensuring they can live in a property for life, or managing assets for a minor child), setting up a trust can be an invaluable tool.

• Direct Beneficiary Nominations: Crucially, always ensure your CPF accounts, insurance policies, and investment accounts have direct beneficiary nominations. For CPF, if no valid nomination is made, funds will be distributed according to intestacy laws. For insurance and investment accounts, a proper nomination ensures funds bypass the probate process and go directly to your designated loved one.

• Lasting Power of Attorney (LPA): This vital legal document allows you to appoint a trusted person (your partner) to make decisions about your personal welfare and property & affairs if you lose mental capacity. This is important for all adults, but particularly for LGBTQ+ couples where default legal next-of-kin definitions might not align with your wishes.

• Advance Medical Directive (AMD): An AMD allows you to make a prior decision regarding life-sustaining treatment in the event of a terminal illness. It's essential for all adults to consider, ensuring your medical wishes are respected.

TallRock Capital: Your Partner for Inclusive Financial Guidance

At TallRock Capital, we don't just offer financial advice; we offer a partnership built on understanding, respect, and expertise. Our team of experienced financial advisors is committed to providing tailored financial strategies that address the unique needs of LGBTQ+ individuals and couples in Singapore.

We are proud of our commitment to diversity and inclusion, a commitment that has earned us the Excellence in Diversity award at the International Adviser Best Practice Awards for both 2021 and 2022. This recognition fuels our dedication to creating a truly supportive environment where every client feels welcome, appreciated, and heard, ensuring your financial well-being is in capable hands.

Your financial journey is unique, and we're here to help you navigate it with confidence.

This Pride Month, we encourage you to take proactive steps towards securing your financial future. Whether you're a local or an expat, building wealth and securing your legacy requires thoughtful planning and the right support.

Take the Next Step:

• Review Your Benefits: Understand what employee benefits extend to your partner and family.

• Start Saving Early: Consistency in contributions is key for long-term growth.

• Secure Your Legacy: Ensure your will and other estate documents clearly reflect your wishes.

• Seek Expert Guidance: Partner with professionals who understand your unique financial landscape.

Disclaimer: This blog post is intended for informational purposes only and should not be taken as legal or financial advice. It's essential to consult with qualified professionals, like the financial advisors at TallRock Capital, for personalized guidance on your specific situation.

Remember, your retirement journey is unique, and we're here to support you every step of the way. Contact TallRock Capital today for a complimentary consultation and let us help you build the financial future you deserve.