Apart from the c. €20k on the mortgage and college etc. expenses, you're spending c. €50k p.a. or €4k+ p.m. Have you analysed this to see exactly where it's going and if savings could be made?
61 , does it make sense for us to retire now ?
- Thread starter misterdarcy
- Start date
Hi
As Bronte say's understanding your current and future expected retirement expenses are your starting point.
Create a simple grid:
As Bronte say's understanding your current and future expected retirement expenses are your starting point.
Create a simple grid:
| Income p/m | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| Salary 1 | 3,200 | - | - | - | - | - | - | - |
| Salary 2 | 1,800 | - | - | - | - | - | - | - |
| ARF | 3,333 | 3,333 | 3,333 | 3,333 | 3,333 | 3,333 | 3,333 | 3,333 |
| PRSA | ||||||||
| State Pension 1 | - | - | - | - | - | |||
| State Pension 1 | - | - | - | - | - | |||
| 10,356 | 5,357 | 5,358 | 5,359 | 5,360 | 5,361 | 5,362 | 5,363 | |
| Expense | ||||||||
| Food | ||||||||
| Bills | ||||||||
| Mortgage | ||||||||
| Kids/College | ||||||||
| Discretional | ||||||||
| - | - | - | - | - | - | - | - | |
| NET | 10,356 | 5,357 | 5,358 | 5,359 | 5,360 | 5,361 | 5,362 | 5,363 |
nearlyoldfellow
New Member
- Messages
- 2
The only thing is if the OP and his wife work until he is 66 , the kids will have flown and assuming that the ARF "washes its own face" in the meantime and grows by say 4% annually they'll still have €1.3 million , plus initially the OP's €14k from the state pension . followed by his spouses' 5 years later.
If he lives until 85 and his spouse say , the same they'll have a combined 24 years to spend €54k plus two state pensions per anum. (in total €68-€82k). There's a lot of spending in that, if you're a bit slower on your feet in your late '70s and '80s and your mortgage paid off and children educated.
If the OP and his partner want to retire now I think they should to be honest. Get rid of the mortgage with the cash and shares money and start enjoying life now while they can . The kids education could be paid off by extra ARF withdrawals if needed in the meantime.
If there's still say , €1 million there in the ARF pot when the OP hits state pension age of 66 what's wrong with that ? I'd say a 1 million euro ARF would be a distant dream for most people. The average pension pot according to a 2022 survey was a grand total of €104,000.
Just my tuppence worth and not everyone will agree but you can't bring it with you.
If he lives until 85 and his spouse say , the same they'll have a combined 24 years to spend €54k plus two state pensions per anum. (in total €68-€82k). There's a lot of spending in that, if you're a bit slower on your feet in your late '70s and '80s and your mortgage paid off and children educated.
If the OP and his partner want to retire now I think they should to be honest. Get rid of the mortgage with the cash and shares money and start enjoying life now while they can . The kids education could be paid off by extra ARF withdrawals if needed in the meantime.
If there's still say , €1 million there in the ARF pot when the OP hits state pension age of 66 what's wrong with that ? I'd say a 1 million euro ARF would be a distant dream for most people. The average pension pot according to a 2022 survey was a grand total of €104,000.
Just my tuppence worth and not everyone will agree but you can't bring it with you.
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They don't have enough cash right now to pay off the mortgage and how do you know the ARF can cover the college expenses along with their own needs?
Thats exactly the point of mapping it out as I suggested and then you can see a lot more clearly the overall situation and the impact of any tweaking of costs/paying mortgage off and by when etc.. This would lead to a better understanding and that would probably indicate taking a larger % of the ARF for the next few years could cover the shortfall in advance of the state pensions
Thats exactly the point of mapping it out as I suggested and then you can see a lot more clearly the overall situation and the impact of any tweaking of costs/paying mortgage off and by when etc.. This would lead to a better understanding and that would probably indicate taking a larger % of the ARF for the next few years could cover the shortfall in advance of the state pensions
nearlyoldfellow
New Member
- Messages
- 2
The €10 k in cash and €12k in shares almost gets the mortgage paid off. €22k. Under my €1m at 66 suggestion they have €156000 after tax etc from the ARF and say €30 k very bad case scenario nett per anum or €150, 000 from the compulsory withdrawal from the ARF . That gives them nearly €61,200 nett annually ( their spending was €70 k including €4800 mortgage. Cut out work expense , travelling to work etc and they'e fine and still have €1m at the OP's 66 birthday.
very i useful i think
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