Plan and protect!
The april 28, 2020
We know we can't always control everything, however we have the power to anticipate, so let's use it!
Death, accident, illness, hospitalization, natural disaster, are all unforeseeable events that can have serious consequences on professional and personal life. The time of retirement, even if it can be anticipated, also represents for many a drop in the standard of living with however sometimes more expensive needs which it is difficult to meet.
But then, how would you react if your lifestyle was disrupted overnight? Your business stops working - what about your income? You are a business owner and you hurt yourself - what about the situation of your business? You are an employee and you lose your job - will unemployment insurance calculated on 70% of income be enough to protect your lifestyle?
So many questions that we would like to answer optimistically.
The pandemic that we have endured for almost a month and a half confronts us with all these problems and worries.
Indeed, many entrepreneurs, freelancers and employees have not imagined a decrease or even the total loss of their income. What about those who have suddenly lost their jobs or are on short-time working? However, we must ensure the well-being of the family and the payment of expenses. How to assume when income is unstable?
The use of health care also makes us realize how important it is to be well covered in terms of health. Is the French social protection system sufficient to cope with these exceptional circumstances?
Social protection in a few words…
Social protection is what allows us to respond to the vagaries of life - illness, accidents at work, maternity, old age, unemployment - likely to cause a reduction in resources or an increase in expenditure.
It is divided into 2 parts:
• Social security which provides basic cover: in the event of illness, accident at work
• Supplementary plan organizations:
Mandatory: supplementary pension schemes (affiliation to a fund depending on the profession exercised).
Optional: mutual health insurance, retirement savings (adapted according to needs)
Even if we can boast of the French system, the fact remains that social security only takes care of part of our needs!
Concretely, if you suffer from an "ITT" (temporary incapacity for work), only 50% of your income is covered, if you have an "IPT" or "IPP" (permanent total or partial disability), the annuity that will be paid to you until your retirement is calculated according to criteria often not very advantageous of an amount much lower than your income.
Finally, we are aware that retirement leads to an average 30% drop in income.
If you do not want to be confronted with these situations, it is then necessary to set up additional provident measures to benefit from a complete cover adapted to your situation, and to protect you and your family.
• Who is this for?
Whether you are an individual, an employee, a business owner, a self-employed person, a trader, an artisan, in a liberal profession, these subjects concern you all!
You have several loans in progress and overnight you disappear: how can your loved ones handle the situation without your income? Are you on sick leave and your bills are piling up? You are laid off, injured, sick: your income is decreasing but your expenses are not.
You will probably have to review your priorities ... Unless ...
The solution lies in the proactive development of tailor-made solutions taking into account your needs and your situation. Planning is definitely protecting!
• What solutions?
There are several steps to ensure the protection of your daily life and that of your loved ones. And if you haven't started yet, now is the time:
1) Establish a pension balance sheet: this will allow you to determine whether your social protection is suitable for your family, wealth, current and future professional situation.
2) Establish a retirement balance sheet: in order to know more precisely how it will look and therefore to anticipate it as best as possible by finding the device suited to your objectives.
3) Once these assessments have been made, monitoring over time is essential to always be in step with the evolution of your situation. This is why our Wealth A7 experts are present today and will be there tomorrow to support and advise you over the long term.