Best use of savings to prepare for college and retirement


New Member
Age: 48
Spouse’s/Partner's age: 50

Annual gross income from employment or profession: €39,500
Annual gross income of spouse: €39,500

Monthly take-home pay €4705

Type of employment:. Self-employed company directors of retail company

In general are you:
(a) spending more than you earn, or
(b) saving?

Rough estimate of value of home: €160,000
Amount outstanding on your mortgage: €68,000 – 16 years remaining
What interest rate are you paying? 2.3% fixed for 12 more months

Other borrowings –€9,000 outstanding on Credit Union loan for car & home improvements. Paying €320 per month.

Do you pay off your full credit card balance each month? yes

Savings and investments:
Credit Union: €11,000 (rainy day & holidays) saving €600 per month
Post Office €43,900 in combination of bonds (childrens allowance savings)
Bank of Ireland Regular Saver A/C current balance €7500 saving €500 per month

Do you have a pension scheme? Company Paying: €420 each per month. Not paying anything ourselves.

Do you own any investment or other property?
Apartment Value €75,000
Mortgage €60,000 remaining, 10 years left, Rate ECBR+1.15%

Ages of children: 16 & 14

Life insurance: Yes

Main Question.
I have suddenly realised how fast time is going and want to ensure that I am planning adequately for retirement. We are currently saving €1,100 per month which we intend to increase to €1,500 as well as the childrens allowance.
What is the best thing to do with this?
Should we be adding to our pension or some other investment product?
We have only taken what we needed from the business over the years but envisage being able to pay ourselves more over the next few years. Would it be better to increase our pay and save/invest that or increase what the company pays into our pensions?
I thought that I was doing the right thing by saving the childrens allowance in the post office childsaver plus through the years. I now realise that was not the best option. We always envisioned that this would be used to fund college for the two kids and are conscious that this is coming up in the next few years. Should we leave it where is is now?
Thanks in advance for the advice.


First obvious thing to do is pay the CU 9k off immediately either by using your shares (they will desist but you should insist) or from 48 child fund.