That’s coincidentally where I have ended up in my thinking/ cash flow projections 60k net in todays money ..,obviously if you have expensive/ luxuriously taste then it would be moreI’ve done a bit of work on it and our minimum target is €60k a year net of tax in today’s terms, with anything over and above that being ‘jam’.
The great unknown is stuff like nursing home or medical care, which can be €60-80k per person per annum in today’s terms.
60k net in todays money seems high, say you are 15 years out from retirement, wouldn’t you need to be planning to breach the SFT by a fair way on your pension fund to make that possible?That’s coincidentally where I have ended up in my thinking/ cash flow projections 60k net in todays money ..,obviously if you have expensive/ luxuriously taste then it would be more
60k net in todays money seems high, say you are 15 years out from retirement, wouldn’t you need to be planning to breach the SFT by a fair way on your pension fund to make that possible?
Yes I read it as net of tax single income and I read retirement target sum as amount in pension fund and also it ‘in todays money’ so it’s a net income of 80k ish after tax in 15 years? That’s some fund.The €60k is net of tax though.
Well I’m talking about a couple. So €26k or thereabouts is covered with State Pensions. It’s probably closer to €100k gross I’d have thought, so €37k each, or ARFs of about €925k. A few bob alright, but not gigantic either.Yes I read it as net of tax single income and I read retirement target sum as amount in pension fund and also it ‘in todays money’ so it’s a net income of 80k ish after tax in 15 years? That’s some fund.
Some do, not many as the projected timeframe of going into a home is so far away (I know we don't know when it will be, if at all).That’s interesting. Thanks Steven. Does anyone ever ask for it to be included? I don’t like the idea of having to sell my home or not having a choice around where to go.
I’ve been in too many nursing homes over the years and I can truthfully say I wouldn’t want to end up in any of them…feels like you are just waiting to leave this world…in other words does it really matter which one you end up in!
I am allowing for 2 state pensions and it’s for a couple . I am more saying that’s what income I think we need annually in today’s terms . Just my opinion . I feel it’s realistic but not extremely extravagant.60k net in todays money seems high, say you are 15 years out from retirement, wouldn’t you need to be planning to breach the SFT by a fair way on your pension fund to make that possible?
Of course you are. You're in a home because you can't live in your home and the people in them tend to be old...and most are ready to go too!!I’ve been in too many nursing homes over the years and I can truthfully say I wouldn’t want to end up in any of them…feels like you are just waiting to leave this world…in other words does it really matter which one you end up in!
What valuation do people use for the state pension in the future for these calculations? Do you assume it will rise at say 2% annually?I am allowing for 2 state pensions and it’s for a couple . I am more saying that’s what income I think we need annually in today’s terms . Just my opinion . I feel it’s realistic but not extremely extravagant.
Of course you are correct Steven…the quality of homes can vary greatly and they will become far more important as family size decreases…it’s very important that one makes the most of there time in retirement to do the things that they where hoping to achieve as u never know when age catches up and it becomes to difficult…fair deal scheme can take care of your nursing home fees…there’s still that idea you should leave your home to your kids at the expense of enjoying yourself in retirementOf course you are. You're in a home because you can't live in your home and the people in them tend to be old...and most are ready to go too!!
My aunt is currently in one and it's the best place for her. She has dementia and isn't able to look after herself. She was living a good bit away from the rest of her family, so she didn't get visitors that often. She's now in a home near us so everyone drops in to see her all the time. She's clean, her clothes are clean, she's sleeping in a bed again (was on the sofa for years, afraid to go up the stairs) and eating like a horse. A lot of the time she's not sure what's going on but she's as happy as Larry.
There is a big difference between some of them. Look at the HIQA reports and you'll see the differences.
i just assume increases match inflation so 2 oap =26k approx now and so assume will retain their real value in real terms. i do not use any multiplier.What valuation do people use for the state pension in the future for these calculations? Do you assume it will rise at say 2% annually?
There is no formal indexation in Ireland. It’s reasonable to assume it will keep up with inflation, possibly more as a bonus.What valuation do people use for the state pension in the future for these calculations? Do you assume it will rise at say 2% annually?
I looked for CSO data on this and they don’t really have spending measures by fine age group. My anecdotal experience with several relatives is that discretionary spending drops a lot after 80, even with good health. People just don’t have the urge to go out as much, often you lose your driving licence, people only really want essential house repairs, etc. I’ve had relatives accumulate six figures in bank deposits in their 80s without even trying.whereas after 75 (or so) surely its likely one spends less.
i just assume increases match inflation so 2 oap =26k approx now and so assume will retain their real value in real terms. i do not use any multiplier.
There is no formal indexation in Ireland. It’s reasonable to assume it will keep up with inflation, possibly more as a bonus.