Can academic research help better equip financial advisors to discuss potential financial inequalities in a couple? This is the bet made by the National Institute of Scientific Research (INRS) and the Chamber of Financial Security (CSF) which are launching a new research chair.
The Money, Inequalities and Society Chair will look at inequalities in the management of personal finances, such as gender inequalities or the inequalities experienced by immigrants.
Its mission will be to produce research, but also to provide training and tools for members of the CSF.
The project was born “a little over a year ago” following a conference given by INRS professor Hélène Belleau, a specialist in financial issues in couples. “I said to myself: ‘We have to do something with this,’” says the president and CEO of the CSF, Marie Elaine Farley, in an interview.
The new chair’s first research topic will focus on “complex” marital situations. For example, a blended family where both spouses have children from a previous union.
“It’s complicated for the people themselves,” admits Mme Belleau, who holds the new chair.
The Chair will work with members of the CSF to see how financial services advisors deal with this type of situation and what solutions some of them have found.
“We want to better equip financial services advisors so that they can offer things that are both fair and egalitarian, which are better suited to this type of situation,” explains M.me Belleau.
The subject is all the more important as many couples in common-law relationships are unaware that their status does not provide the same rights, obligations and protections as marriage in the event of separation, underlines Mme Farley.
“If the advisor brings the subject upstream and addresses the consequences in the event of separation, perhaps this will lead to a more equitable distribution between the couple, whether for expenses or savings. It’s easier to talk about it when things are going well. »
Lack of understanding of the legal context of de facto unions leads to inequalities, particularly for long-term savings for retirement, adds M.me Belleau.
Spouses tend to manage longer-term savings separately, although many manage money together on a day-to-day basis.
Hélène Belleau, specialist in financial issues in couples
“The person who earns the most will sometimes be able to put money aside during this time,” continues the professor. Little by little, he will be able to put a certain amount aside in his RRSP. When the couple separates, one of them was able to put money aside and the other was not. »
The researcher also emphasizes that women are financially penalized by their family responsibilities, in particular because they reduce their income to take care of children. Ultimately, women’s retirement income is nearly 40% lower than that of men in Quebec, she points out. “The cost of family life is very expensive for women. »
Two other research projects
In addition to “complex” situations, INRS will carry out two other projects. One will focus on the economic dynamics of immigrants. “There are several questions, in fact, that are raised for which we have very few answers,” illustrates M.me Belleau. Do people with immigrant backgrounds have the means or are able to save for retirement or in the longer term? »
The other study will focus on financial perceptions and practices in regions where the income gap is higher between men and women.
This is the case in remote regions where the most present industries offer well-paid jobs in traditionally male sectors.
“That’s what we want to check: does the absence of daycare and the distances to be traveled end up causing women to stay at home more? […] Some simply cannot afford to leave their spouse [si elles le souhaitent]. »
The goal will be to better equip financial advisors who work in these regions, says Mme Belleau. “Can financial services advisors act, can they do something to try to reduce these inequalities? »