I spend my days showing people the money that can be saved by simple changes (without reducing benefits). These savings amount to thousands of euros over the course of the plans but yet a lot of people make do with the status quo. I think ironically the recession has a lot to do with this. Whilst we were all affected by it a lot of us have forgotten how to deal with things we can control in our everyday lives.
Mortgage Protection Insurance
Most of us have this cover and it takes on average 30 mins to change your existing plan and the average savings would be in the region of €400 per year. It does not seem like a lot but most of us have about 20 years left on our mortgages (if we are lucky) which would be a saving of €8,000. Believe it or not but just 3% per cent of those surveyed by the National Consumer Agency (NCA) switched their Mortgage Protection and Life Assurance at the lowest rate of switching at 3% compared to a 26% change in groceries and 23% change in car insurance. Want to save over €100 a month? Switch your mortgage The switching market is finally heating up on the back of rate cuts from AIB and KBC. But, while the savings can be considerable, Irish homeowners remain reluctant to switch. KBC is offering the most competitive rate at 2.95% interest rate on 10 year fixed term. (as of *17/10/17). I would grab this with both hands if I had a mortgage or are looking to get on the property ladder.
This is another area where significant savings are to be had. 2.1 Million people in Ireland have Health Insurance and over 50% of people are paying too much for the cover they have. The average saving for a family is €990 per year and this takes on average 45 mins to do when you get your renewal notice (you have 6 weeks in the year in which to do this – 4 before renewal and 2 after* – *cooling off period). Alternatively, you can give us a call to discuss.
So rather than thinking about the hassle of switching (most of which is percieved) think about what you can do with the savings. As one client said to me recently “It is annoying that the bank have my money for nothing” (he was talking about getting 0.05% interest on his Current/Savings Account).
Some of you may have a “Financial Advisor” and think they are “sorted”!! It is worth asking whether they are independent and how often have they suggested changes to save you money. Don’t be put off by switching – You don’t have to change Banks or get a Divorce to save money but if you want to save money then get in touch with us – “What have you got to lose?” Contact us
Budget 2018 with MD of Alpha Wealth Nick Charalambous
Alpha Wealth trading as Alpha Health is an Independent broker with offices in Cork and also in Dublin.
Alpha Wealth is regulated by the Central Bank of Ireland.