Surviving the age of austerity

There’s a general feeling that we’re entering a new era.

The Coalition Government’s Spending Review  has proposed cutting £81 billion from public spending over the next four years, and the Government has already cancelled 12 projects worth a total of £2 billion approved by Labour earlier in 2010.

A leaked list suggested that 180 quangos would be abolished, and a further 124 more would be merged. The Office for Budgetary Responsibility  has said that up to half a million public sector jobs could disappear by 2014-15.

You don’t have to be an economist to see that all this represents a watershed for the way we’ve been living. Indeed, a number of punters have already called this the “age of austerity”. Even David Cameron, back in June, warned of “pain” to come.

But what does this mean for each one of us? In particular, for financial planning considerations such as protection and life assurance?

When times are hard and belts are being tightened, it’s natural to see personal financial planning in areas such as life assurance, critical illness cover, accident, illness and redundancy protection in the light of luxuries, rather than necessities.

But at the Welbeck Group, we say that the reverse is true. Those safeguards are even more vital in challenging financial times.

Wartime leader Winston Churchill – someone well used to adversity – recognised this. He said, “If I had my way, I would write the word ‘insure’ upon the door of every cottage and upon the blotting book of every public man, because I am convinced, for sacrifices so small, families and estates can be protected against catastrophes which would otherwise smash them up forever.”

At Welbeck, we feel he had the balance exactly right: sacrifices so small against catastrophes that would smash people up forever.

Considering the financial security it provides, life assurance is not expensive. Nor are other forms of protection. And that’s to say nothing of the peace of mind they offer, which is literally priceless.

Saving a few pounds a month by letting life assurance and other protection plans lapse is a good definition of false economy. If one of Churchill’s “catastrophes” should befall you, at least you’re protected against the financial consequences if you’ve got cover. And that can make all the difference to your family’s financial survival.

So at Welbeck, we say that the best way to survive the age of austerity is to protect yourself against it. Talk to us today for a free, no-obligation discussion of how well protected you are.