Health cover a heavy claim on the budget

as well as making claiming easier,’’ Astwick said.

Is it just Southern Cross?

No, private for-profit health insurers also lift premiums every year.

‘‘Six per cent isn’t too bad. Our medical policy annual renewal increased around 16 per cent with Sovereign,’’ one Stuff reader commented.

Sovereign has been sold to AIA Insurance.

As people age, and their list of preexisting medical conditions increases, it gets hard to switch health insurer.

Do you even need health insurance?

Many people describe health insurance as a ‘‘luxury’’, though for some, cancelling their cover also means cancelling their children’s cover too.

Everyone can get treatment through the state healthcare system, even if that can mean enduring lengthy waiting lists.

For some, health insurance is affordable only until they stop work, or as one reader put it: ‘‘Come retirement when the need for health care increases, the premiums escalate beyond what is possible for many.

‘‘I retire soon and am keeping my KiwiSaver for any medical requirements,’’ said another Stuff reader. ‘‘I did have subsidised health insurance through my employer but could not afford to pay the premiums for the 65+ age group on a pension.’’

Another cited the story of his parents: ‘‘Premiums became so stupidly inflated by the time they reached their mid-sixties (circa 2000) that they simply cancelled their health insurance and paid for the operations themselves when not acute enough to warrant emergency department admission. My Mum’s broken hip and ankle plus her pacemaker were acute enough to avoid any public hospital waiting lists, my Dad’s prostate (2x) ops and heart bypass came out of savings. All up Dad (who died at 78) broke even, we think, while Mum’s well ahead (and still kicking at 85).’’

So, he said: ‘‘My wife and I cottoned on and canned private health insurance in our 30s (when we personally experienced the complete lack of mental health condition cover), backing ourselves to be disciplined enough to save (and build) the premiums in order to have a war fund when we need it.’’

But having insurance is not about paying for smaller claims that can be covered from savings. It’s about covering catastrophically expensive treatments.

One reader put it like this: ‘‘Had Southern Cross insurance for four years, then contracted cancer . . . So far SC has payed out in excess of $150,000, and I haven’t had to pay a cent.’’

It’s the time of year to set resolutions. Small changes now could set you on a better financial path in 2019. Here are six goals to strive for, and how much more money you could get in your pocket, should you achieve them.

Switch up your savings

Lots of people resolve to ‘‘save more money’’ each year but fail horribly.

The best way to save is to pay yourself first each payday. Work out what you can afford to save and transfer it into your savings account as soon as it arrives.

Don’t try to cut your spending and put aside whatever is left over, because chances are, there won’t be anything.

If you can save $20 each week until the end of the year, you’ll have $1040 in your bank account.

Increase your mortgage repayments

Small increases to your home loan repayments make a big difference.

If you’ve recently bought a house, head to a calculator such as Sorted’s and work out how much you’d need to tweak your repayments to clear the debt before you turn 50.

If you’re over 50 and still carrying a mortgage, work out what you’d need to do to clear it before you are 60.

Being mortgage-free is one of the biggest factors in having a comfortable retirement.

Anything you can do now to get there will pay off many times over.

If you increase your mortgage payments by $20 a week on a $500,000 mortgage at a 5 per cent interest rate, over 25 years you could reduce the term of your mortgage by a year and save $24,006.

Increase your KiwiSaver contributions

Check in on your KiwiSaver fund to make sure it’s on the right track.

Check the type of fund you are in is right for your circumstances and that you’re contributing enough to reach your goals. This could be a good year to increase your contributions – markets are showing volatility which means there’s a good chance that you’ll get an opportunity to pick up more shares at better prices.

If you are a 25-year-old woman earning $60,000 and contributing 3 per cent plus 3 per cent from your employer, you could expect to end up with $272,749 in KiwiSaver at 65, or $250 a week. If you increased your contribution to 4 per cent of your salary, you’d have $321,592 or $295 a week through retirement.

‘‘KiwiSaver is an investment and, like any investment, people need to take a look at how it’s progressing and what changes they can make to get maximum value,’’ said Joe Bishop, Kiwi Wealth general manager of customer, product and innovation.

He said members should not be in a default fund over the long term.

‘‘These are simple, low-risk funds that act as a holding position while members assess a fund that’s right for them, be it conservative, balanced or growth. Given they are low-risk, returns are – generally – commensurately lower than most other funds. Over time, that can equate to a lot of money an investor might miss out on having come retirement.

‘‘As a general rule, younger KiwiSaver members should opt for growth funds, while those closer to retirement age might look to manage risk or volatility with more conservative options.’’