In a constantly evolving professional world, self-employed workers occupy an increasingly important place in the economy. Whether as individual entrepreneurs, artisans or liberal professions, their status confronts them with specific challenges in terms of social protection, an essential component to ensure their financial security. Social security coverage adapted to the needs of self-employed people allows them to protect themselves against the hazards of professional life, thus avoiding disastrous financial consequences.
The specificity of social protection for self-employed workers
The social protection of self-employed workers (TNS) is often seen as a system in its own right, distinct from that of employees. While the latter benefit from comprehensive social security coverage provided by their employer, TNS often have to take charge of their social protection, thus exposing their finances to various risks in the event of unforeseen circumstances.
The different components of social protection
Self-employed workers must understand the different components that make up their social protection system. This includes health benefits, retirement plans, sick leave and disability insurance. Each of these insurances is crucial to guarantee a stable income in the event of a hard hit.
The consequences of insufficient social protection
Insufficient social protection for TNS can lead to alarming financial consequences. In the event of prolonged hospitalization or disability, self-employed people can quickly find themselves in a critical situation if their coverage is not adequate. Approximately 41% of self-employed workers were covered by pension provision in 2023, leaving nearly 6 TNS out of 10 exposed to financial risks.
Concrete examples of financial risks
Imagine a freelance graphic designer suffering from an accident rendering him temporarily unable to work. Unlike an employee who could benefit from daily allowances, this graphic designer would see his income drop instantly, almost without respite. Similar situations are found among many self-employed people, such as a plumber without income during an extended recovery. Provident protection therefore appears to be a strategic imperative to face life’s unforeseen events.
Social protection solutions available for TNS
For self-employed workers, several options social protection available to them. These solutions are diverse and meet varied coverage needs. Whether through private insurance, mutual insurance or plans specific to their status, self-employed people can fill the gaps in basic coverage.
Insurance and foresight
One of the first steps that a TNS must take is to take out pension insurance. This could include an unemployment insurance policy, cover for incapacity for work, and protection in the event of death. These additional guarantees are essential to provide an effective safety net, both for the worker and their family.
How to choose suitable social protection?
Choosing suitable social coverage represents a crucial moment for TNS. This requires a careful assessment of their personal and professional needs. This evaluation is not limited to the selection of the cheapest premium, but involves reflection on the quality of the guarantees offered.
Assess your individual needs
Each self-employed situation is unique. Assessing your needs involves considering several factors. For example, the nature of your activity, the level of income, the stability of your clientele, as well as your family commitments influence all your choices in terms of social protection. Being accompanied by an insurance expert could make this process easier.
Tax advantages linked to pension provision for TNS
Beyond the protections offered, the foresight for self-employed workers can also entail significant tax advantages. For example, under the Madelin law, contributions paid to pension contracts can be deducted from taxable profit, thus offering a significant tax reduction.
Illustrative example of tax deduction
Consider an independent consultant with an annual profit of €50,000. With the Madelin law, he can deduct up to 3.75% of his profit for his pension contributions. This represents an amount of €1,875 to be deducted, which both reduces the tax payable and strengthens financial security in the event of a hard hit.
Conclusion on the importance of social protection for TNS
Faced with the challenges of the modern world of work, self-employed workers must pay particular attention to their social protection. The adequate coverage system then becomes a real asset to guarantee their financial security.