Emphasis on Personal Responsibility
In the financial world things are in disarray, and in light of the changes announced in the recent emergency budget some important issues have arisen.
Although nobody in government seems to have used the phrase, it's clear that in the coming years the intention is that we all take far more personal responsibility for our financial futures. With budget cuts of up to 25% for some government departments, particularly welfare spending, we will all be far less able in future to rely on the state to assist us when life deals us a blow. The cuts will also inevitably lead to large job losses for public sector workers and in companies that rely on the public sector for contracts and orders. Losing your job doesn't just cut your income down to £75 a week, but it also deprives you of pension contributions, sick pay, your company car etc. These are all costs that have a long term impact on your overall wealth.
In the past we have been able to take it for granted that if the worst happens, the state will step in to some degree. However, as insurance exists for many of the risks in life, I strongly suspect that in future the government attitude will be "you could have taken insurance, but if you didn't want to take personal responsibility don't moan if the state doesn't help you".
For these reasons I strongly recommend that all our clients take a long look at the future impact of this budget on your family's finances. In particular ask yourself:
- Is my job safe? If I am made redundant will I be fighting hundreds of other good candidates to get another job? What level of benefits would I be entitled to? Would it be wise to take insurance to pay my mortgage for up to 12 months if I am made redundant?
- What will happen if I get sick or have a nasty accident? Will I get sufficient benefits to pay my bills? Supermodels insure their faces, footballers insure their feet. Would it be sensible to insure myself in case I am too sick to earn the money I have become used to?
- Will the NHS still be getting the money it needs to cure me quickly or will we go back to the bad old days of long waiting lists and rationing of treatments? Would it be smart to take private medical insurance so my family can jump the queue and get the best medicines?
If you feel that any of these issues concerns you and you would like to ensure that yourself and your family remain protected once the cuts take effect, please contact me and I can work with you to identify exactly the right package at a price you can afford.
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