Life admin... does it ever end? Some things you can’t avoid, like paying bills. Others are easier to put on the long finger. Maybe you’ve been thinking about changing health insurance provider but haven’t got around to it yet. Or it simply seems like too much hassle. Well, we’re here to answer your most frequently asked questions, let you know the benefits of joining Irish Life Health, and show you how easily you can make the switch! 

1.      Why Should I Switch to Irish Life Health?

We don’t believe in ‘one size fits all’ when it comes to health insurance. That’s why we have a whole host of plans to suit your individual needs and lifestyle, with cover starting from as little as €10.21 per week. As well as that, we’re running a 5% discount on certain plans for a limited time. To get a quote and avail of this offer, click here. 

2.    What Benefits are Available? 

As well as cover, we offer our customers a wide range of benefits relating to their health and wellness. You’ll have access to exclusive and innovative resources like our new virtual health service MyClinic, the new home for all your virtual health needs. Members get access to back and neck physiotherapy, professional counselling, unlimited Digital Doctor consultations, and more. You’ll also have access to MyLife, an app to help you embrace a healthier lifestyle. Other benefits included with our hospital plans include a dental access package, health screening and discounts on laser eye surgery.

3.    Will I Have a Gap in Cover? 

As long as you don’t let your previous health insurance lapse for more than 13 weeks, we will accept the time from your previous health insurer, and you’ll have continuity of cover. 

4.    What If I Have a Pre-Existing Condition? 

When switching health insurance with a pre-existing condition, a waiting period may apply where you upgrade/ increase your level of cover from your previous policy. The waiting period will apply from the date you took out health insurance for the first time (with Irish Life Health or another insurer). If your insurance lapsed for 13+ weeks, the waiting period will reset from the date you took out your health insurance. 

5.    Does Switching Affect My Lifetime Community Rating (LCR)?  

In 2015, the Irish government introduced Lifetime Community Rating legislation. Under LCR, community rating is modified to reflect the age at which a person takes out private health insurance. Late entry ‘loadings’ are applied to the premiums of those who join the health insurance market aged 35 or over. So, if you’ve had continuous cover from April 30th, 2015, no LCR loadings will be added to your new policy with Irish Life Health. Otherwise, LCR loadings may apply to people aged 35 and over. 

Are we finally getting back to normal? It’s great to see people out and about again as the country eases itself out of lockdown. And for all of those retail businesses that were forced to close their doors, the early signs are good with the example of footfall on Grafton Street back to approx. 90% of the pre-pandemic levels.  

This shouldn’t really be a big surprise to us though, as Irish household savings of €15bn during the first year of the pandemic from March 2020 to February 2021 were more than twice the normal savings rate. At the end of September last year, Irish household savings stood at a colossal figure of €135bn.

This money is sitting in bank accounts, effectively earning nothing and in some cases actually costing money for the privilege of leaving it there.

So what are savers to do?

Now just might be the time to re-examine the approach you’re taking with your hard-earned nest egg and maybe take a look at alternative investments for your long-term savings.

Deposit accounts have their place

There’s no doubt that deposits always merit some consideration when building a portfolio.

Certainly for amounts up to €100,000, they are pretty much risk free. They also are extremely liquid, as you can walk into a bank, and if your money is in a demand account you can withdraw it all on the spot. Deposits also make a lot of sense if your investment horizon is very short.

But never forget about diversification

However there are also issues with deposits that cannot be ignored. Some savers simply put all of their money in the bank and leave it there. This may be a mistake for a number of reasons. First of all, this approach may not suit your appetite for risk and it completely undermines the merits of diversification. Depending on your investment timeframe and risk appetite, you may be better served by also considering other asset classes in order to achieve your investment objectives. Yes, there is very often merit in having some of your money on deposit, however it often makes more sense to have your money split between deposits and other asset classes.

…Or the impact of inflation

With the ESRI forecasting inflation in Ireland in 2022 of 4%, inflation is the silent killer for deposit holders. It is often overlooked especially when interest rates are low.  However with interest rates at zero, any price inflation at all erodes the purchasing power of your savings. You’re effectively just becoming poorer.

It’s time for a plan

Nobody wants to  see the purchasing power of their savings dwindle over time. On the other hand, you might be nervous about other asset classes and the risks attaching to them - it’s time for a plan…

This starts with understanding your saving / investment objectives, clarifying your time horizons for your savings and getting clear insights of your attitude to taking risk and your capacity to take some more risk. Once these factors are clearer, then we can see if you’ll be better served by considering alternatives.

So why is there €135bn on deposit?

There’s no easy answer to this one. In many cases, it’s simply down to inertia. Some people think moving their money into alternative investment vehicles is probably too much hassle, but this inertia is costing them money. We also believe it is pretty misguided, as the process of getting investments in place is very straightforward, particularly now with the use of digital signatures etc.

For others, they just don’t want to take any risk. This may be because of underperforming investments in the past, or just wanting to know that you won’t lose money (except from inflation of course). Our belief is that this is fine if your time horizon is very short or your savings will enable you to achieve your goals in the future.

But gently challenging these assumptions can be illuminating. Our interest is in you having enough money to achieve your investment goals – what is the money actually for? And if your need to access the money is likely to be at least 5-10 years, maybe there’s a better way.

It certainly merits a conversation. We look forward to discussing whether having so much of your money on deposit is the right approach for you.

Look, it happens regularly… people realise that with their current retirement planning approach, they are going to fall short of achieving the lifestyle they want in retirement. This happens for a whole lot of reasons – not having a plan, starting to save too late, not saving enough or the wrong investment strategy.

The starting point has to be getting a clear and realistic picture of where you actually stand. We can help you here, by assisting you in,

1. Identifying the lifestyle to want in retirement
2. Putting a cost on that lifestyle – the fund you will need to achieve it
3. Seeing if you are on course to achieve your targeted lifestyle with your current retirement funding plan (including all sources of income in retirement)
4. Identifying any shortfall
5. Coming up with a plan to address the shortfall.

Let’s assume you’ve done all of this, have identified a shortfall and want to do something about it. Here are a few options that you can consider,

Work longer

Before the last election, the state pension age was soon to move out to age 68. This initiative was then removed. However the question still needs to be asked - will our changing demographics cause the state pension to become unaffordable in years to come without such action?

But we should also recognise that in general, we will all be healthier through our 60’s and 70’s than generations before us, and will be well able to continue working. Many people will want to keep working, some may need to in order to further fund their retirement. So start thinking about how you might keep working longer than you originally intended, even on a part-time basis.

Save more

Yes, this is often easier said than done, but it’s an obvious way of improving your lifestyle in retirement. Do you really need that second holiday? Do you need to change the car every 4-5 years?

While we were all forced into the situation, one thing many people learned during the Covid-19 lockdown was that our spending patterns can be reduced. Foregoing some of life’s pleasures today is a sure-fire way to helping you to build a better lifestyle in retirement.  

Lower your sights in retirement

Another action you can take is to revisit your desired lifestyle in retirement. Maybe you have been aiming for the dream lifestyle, which is truth is simply beyond your capacity to achieve. It’s really important to strike the right balance between building the future life you want, while also enjoying your life today! Neither should be done at the total expense of the other – it’s all about balance…

Review your investment approach

Handle this one with caution, this is where you need our advice! But reviewing your investment approach may be part of the solution. This would need to be very carefully considered, taking into account your investment timeframe both pre and post retirement and your attitude to risk among other factors. Any tweaking of your investment approach would need to make sense when considering your financial plan and all of your financial objectives. This is definitely one to consider… but with a lot of care.

Look for BIG savings

Have you considered downsizing your house in retirement? You may love your current home but living in it during retirement may prevent you from doing many other things you love. For many people, their family home is far and away their biggest asset, with a lot of wealth tied up in it.

Downsizing to a smaller home in the area may possibly be the answer to your financial challenge in retirement. Also if your home is fairly big and your family have flown the nest, do you still need the space? Maybe having a smaller garden to maintain will be a benefit too in your later years. Moving house may just unlock the retirement lifestyle that you really want.

While some of these suggestions might not appear to be too attractive, at least you have some options. Now is the time to consider them, as the longer you delay, the steeper the hill becomes. We’ll be delighted to chat through all of your options with you.