Lillywhite22
Registered User
- Messages
- 16
Personal details
Age: 52
Spouse's age: 48
Partner's age if not married:
Number and age of children: 19, 16, 14
Income and expenditure
Annual gross income from employment or profession: €135k
Annual gross income of spouse/partner: €53k
Monthly take-home pay: 8,800
Type of employment - e.g. Employee or self-employed.
Employer type: e.g. public servant, private company.
Both public servants
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving approx. €1,750 per month
Summary of Assets and Liabilities
Family home value: 380,000
Mortgage on family home: 160,000
Net equity: 220,000
Family home mortgage information
Lender: Avant
Interest rate: 3.8
Type of interest rate: tracker, variable, fixed. fixed for 7 years
If fixed, what is the term remaining of the fixed rate? 6.5
Remaining term: (Original term is not relevant) 11.5
Monthly repayment: 1370
Other borrowings – car loans/personal loans etc
Car loan - €19,000 outstanding - €430 pm for 4 more years
Do you pay off your full credit card balance each month? No credit card
If not, what is the balance on your credit card?
Pension information
Value of pension fund:
Public sector pensions (pre-2013) with 21 years service (me) and approx 6 years service (spouse). In addition, I have a small pension fund that my employer pays into (its a secondment arrangement whereby I receive a top up on my public sector salary which is pensionable). This will have a fund of about €150k when I am 60.
Other savings and investments:
College Fund of €30k attracting 3% interest, Savings Plan with c. €10k, Rainy day credit union account with approx €10k
Other information which might be relevant
Life insurance: €200k joint life, Group Life Scheme via employer - pays twice annual salary
Oldest son is in first year of college at the moment. He lives at home and has a part-time job so minimal cost to us. College fund and savings plan are with a view to potential post-grad and child 2 and 3 college costs.
What specific question do you have or what issues are of concern to you?
We are hoping to both retire when I am 62. At that stage I will have 30 years service - so 3/4 of a full public sector pension. Between my public sector pension and my wife's actuarially reduced pension we expect to have an annual pension of c. €55k gross. My wife will also be eligible to claim the state/supplementary pension of €14k when she is 65. I am currently paying into an AVC to maximise my pension lumpsum. So between the two of us we will have a tax free lumpsum of about €235k in today's values.
At age 60 our current fixed rate on our mortgage expires and we expect to have a mortgage balance then of about €60k. What we are thinking of doing is using the small private pension fund (c. €150k) to clear this balance. This would mean taking 25% tax free lumpsum plus a taxable lumpsum to clear the €60k - leaving just over half of the fund. What we will do then is try to live off my wife's salary for two years and save mine to add about €65k to our lumpsum to bring it to €300k. My wife's salary is approx the same as what we will get in our pension - so it will help us adjust to the new income level.
Does the above represent a sensible plan - Or are there any better ways of getting where we want to get to?
Many thanks in advance!
Age: 52
Spouse's age: 48
Partner's age if not married:
Number and age of children: 19, 16, 14
Income and expenditure
Annual gross income from employment or profession: €135k
Annual gross income of spouse/partner: €53k
Monthly take-home pay: 8,800
Type of employment - e.g. Employee or self-employed.
Employer type: e.g. public servant, private company.
Both public servants
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving approx. €1,750 per month
Summary of Assets and Liabilities
Family home value: 380,000
Mortgage on family home: 160,000
Net equity: 220,000
Family home mortgage information
Lender: Avant
Interest rate: 3.8
Type of interest rate: tracker, variable, fixed. fixed for 7 years
If fixed, what is the term remaining of the fixed rate? 6.5
Remaining term: (Original term is not relevant) 11.5
Monthly repayment: 1370
Other borrowings – car loans/personal loans etc
Car loan - €19,000 outstanding - €430 pm for 4 more years
Do you pay off your full credit card balance each month? No credit card
If not, what is the balance on your credit card?
Pension information
Value of pension fund:
Public sector pensions (pre-2013) with 21 years service (me) and approx 6 years service (spouse). In addition, I have a small pension fund that my employer pays into (its a secondment arrangement whereby I receive a top up on my public sector salary which is pensionable). This will have a fund of about €150k when I am 60.
Other savings and investments:
College Fund of €30k attracting 3% interest, Savings Plan with c. €10k, Rainy day credit union account with approx €10k
Other information which might be relevant
Life insurance: €200k joint life, Group Life Scheme via employer - pays twice annual salary
Oldest son is in first year of college at the moment. He lives at home and has a part-time job so minimal cost to us. College fund and savings plan are with a view to potential post-grad and child 2 and 3 college costs.
What specific question do you have or what issues are of concern to you?
We are hoping to both retire when I am 62. At that stage I will have 30 years service - so 3/4 of a full public sector pension. Between my public sector pension and my wife's actuarially reduced pension we expect to have an annual pension of c. €55k gross. My wife will also be eligible to claim the state/supplementary pension of €14k when she is 65. I am currently paying into an AVC to maximise my pension lumpsum. So between the two of us we will have a tax free lumpsum of about €235k in today's values.
At age 60 our current fixed rate on our mortgage expires and we expect to have a mortgage balance then of about €60k. What we are thinking of doing is using the small private pension fund (c. €150k) to clear this balance. This would mean taking 25% tax free lumpsum plus a taxable lumpsum to clear the €60k - leaving just over half of the fund. What we will do then is try to live off my wife's salary for two years and save mine to add about €65k to our lumpsum to bring it to €300k. My wife's salary is approx the same as what we will get in our pension - so it will help us adjust to the new income level.
Does the above represent a sensible plan - Or are there any better ways of getting where we want to get to?
Many thanks in advance!