These are unprecedented times, where we are living through a major public health crisis and a major economic crisis as a result of Covid-19.
While different countries grapple with implementing the appropriate response, adapting to escalation and changing circumstances to protect as many people as they can, the impact on business varies, country by country. There is no doubt, regardless of policy, that there has been a sudden and sharp decline in business. Government supports are being offered at levels never previously seen.
Life insurance policies are soaring according to Joey Sheahan of MyLifeCover.ie. Risk mitigation is key, and people want their loved ones protected. The speed at which individuals are incepting life cover is being hugely influenced by their view that exposure to Covid-19 is an inevitability. Far from considering the worst case scenario, they are looking to put a policy in place now in advance of potentially contracting the virus (or any other illness), as they pre-empt uncertainty and potentially a future shift in insurer pre-conditions and premiums in a post-pandemic world.
Covid-19 will leave a large cohort of our population financially impacted. The first hit industries are travel and tourism, followed by small and medium-sized business and retail. As non-essential trade is shut down, the domino effect will continue to be felt. But this too shall pass.
There are some excellent government supports available and being adapted for maximum impact daily. Irish people and businesses are nothing if not resilient. So where does this leave you with your financial planning? Here are some of our top tips to keep your finances in order during the Covid-19 crisis:
1. If you are on reduced time or salary or made redundant, take a deep breath and make a plan! You are not alone in this. Talk to us to plan how you should use your redundancy payment and maximise your other benefits, to ensure you are reducing your tax obligations as much as possible.
2. Consider all subscriptions and review all your outgoings. Where can you save money? Control the controllables.
3. Set out a new budget, and work to that. Prioritise your payment obligations. Do you have mortgage commitments? Then this becomes your top priority. Understand all of your options from moratorium to reduced payments and switcher options.
4. Take out a Life Insurance policy if you have dependents that are financially reliant on you or your income.
5. Don’t rush any decisions on your current Pension plan. There will be a long-term recovery to overcome short-term economic shocks. If you are close to retirement, talk to us for advice and guidance.
6. Plan for getting back into the employment market. Stay connected and organise your referees and put some time into your CV.
7. Consider undertaking an online course or volunteering if your sector is hit with a temporary pause in trading.
8. Keep positive, this crisis period and its impact on your work and home life are not reflective of you, or your skills. While the lights of commerce were turned off overnight, I believe that the will turn back on very quickly too. Take time to appreciate the positive things around you. The economy and work opportunities will come back so get ready.
9. Continue to build and develop your network. Connect with colleagues on LinkedIn. Many business networks are moving to online meetings, can you join in?
If you are facing financial difficulty, talk to us today for expert guidance.