BridgeTheGap
New Member
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- 9
Personal details
Your age: 42
Your spouse's age: 50
Number and age of children: 1, age 7
Income and expenditure
Annual gross income from employment or profession: 58k (part time)
Annual gross income of spouse/partner: 80k (plus approx. 10k annual bonus)
Total: 138k (excluding bonus)
Monthly take-home pay: 7100
Type of employment / Employer type:
Both: Employees, private sector (I moved from public sector to private 2 years ago)
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving – approx. 1500e monthly (for holidays, Christmas, emergency fund, son’s college fund etc).
Summary of Assets and Liabilities
Family home value: 740k
Mortgage on family home: 290k
Net equity: 450k
Cash:
Emergency fund: 30k
Defined Contribution pension fund:
Husband: 295k
Me: 27k (only started it 2 years ago)
Company shares : None
Buy to Let Property value: N/a
Buy to let Mortgage: N/a
Savings plan for son’s college: 7k (Saving 210 per month)
Total net assets: approx. 800k
Family home mortgage information
Lender: Haven
Interest rate 2%
Type of interest rate: tracker, variable, fixed: Fixed until Aug 26.
Remaining term: (Original term is not relevant) 15 years
Monthly repayment: 1,810 (expecting this will increase in Aug 26)
Other borrowings – car loans/personal loans etc
None.
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? N/a
Buy to let properties n/a
Pension Information:
Husband: 295k (pays 20% AVCs, employer pays 10%)
My pension:
Private: 27k. (paying 15% AVCs, employer paying 10%).
Prior to private pension: Public: 11.5 years of HSE service (pre 2013 pension, Superannuation Scheme-salary at time of leaving: 90k).
Other information which might be relevant:
For State Contributory pension, husband will have paid 40 years PRSI. I will have paid only 35 years PRSI (if retire age 58 – see below).
While our family home has equity, we hope to stay here long term.
Life insurance:
Me: 300k life assurance with Irish Life .
Partner: Yes via Job (Death in Service payment of 6 x salary).
Neither of us have critical illness cover.
Income Protection:
Me: Yes.
Partner: Yes via job.
What specific question do you have or what issues are of concern to you?
Our family have had a lot of health issues and bereavements meaning our priority is to enjoy a comfortable retirement together, when we’re both young enough and healthy enough to do so (fingers crossed). Due to an age gap between us, our hope is therefore for me to retire early (age 58) at roughly the same time as my husband takes retirement (age 66). This timing would have a significant impact on my pension position.
We estimate we would want/need in the region of €55k per year post retirement. Until I reach 65/66, I would not have access to a State pension or public service pension (unsure about my private pension). We would initially be relying largely on my husband’s work and State pension. We estimate we will have a significant gap in income for the first 8 years of retirement. I’d love advice please re the best way to fund that gap?
We can afford to put some more disposable income towards longer term investments for retirement. Specifically, we’re wondering if we should direct that money towards a) my husband’s AVCs which he can access at retirement or b) towards EFTs in my name (eg the incoming Government savings scheme next year -waiting to hear more about this) which I can access? We pool our finances jointly and plan accordingly – this works very well for us - but I probably have a slight uncertainty as to whether option a) leaves me vulnerable financially.. AVCs=more tax efficient but EFTs = more flexibility? (Totally new to investments!)
[As an aside, I realise thinking of retiring at age 58 is quite a luxury and, if needs be, I hopefully can and will work a few more years!]
Any advice or feedback on above would be hugely helpful! Thanks in advance
Your age: 42
Your spouse's age: 50
Number and age of children: 1, age 7
Income and expenditure
Annual gross income from employment or profession: 58k (part time)
Annual gross income of spouse/partner: 80k (plus approx. 10k annual bonus)
Total: 138k (excluding bonus)
Monthly take-home pay: 7100
Type of employment / Employer type:
Both: Employees, private sector (I moved from public sector to private 2 years ago)
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving – approx. 1500e monthly (for holidays, Christmas, emergency fund, son’s college fund etc).
Summary of Assets and Liabilities
Family home value: 740k
Mortgage on family home: 290k
Net equity: 450k
Cash:
Emergency fund: 30k
Defined Contribution pension fund:
Husband: 295k
Me: 27k (only started it 2 years ago)
Company shares : None
Buy to Let Property value: N/a
Buy to let Mortgage: N/a
Savings plan for son’s college: 7k (Saving 210 per month)
Total net assets: approx. 800k
Family home mortgage information
Lender: Haven
Interest rate 2%
Type of interest rate: tracker, variable, fixed: Fixed until Aug 26.
Remaining term: (Original term is not relevant) 15 years
Monthly repayment: 1,810 (expecting this will increase in Aug 26)
Other borrowings – car loans/personal loans etc
None.
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? N/a
Buy to let properties n/a
Pension Information:
Husband: 295k (pays 20% AVCs, employer pays 10%)
My pension:
Private: 27k. (paying 15% AVCs, employer paying 10%).
Prior to private pension: Public: 11.5 years of HSE service (pre 2013 pension, Superannuation Scheme-salary at time of leaving: 90k).
Other information which might be relevant:
For State Contributory pension, husband will have paid 40 years PRSI. I will have paid only 35 years PRSI (if retire age 58 – see below).
While our family home has equity, we hope to stay here long term.
Life insurance:
Me: 300k life assurance with Irish Life .
Partner: Yes via Job (Death in Service payment of 6 x salary).
Neither of us have critical illness cover.
Income Protection:
Me: Yes.
Partner: Yes via job.
What specific question do you have or what issues are of concern to you?
Our family have had a lot of health issues and bereavements meaning our priority is to enjoy a comfortable retirement together, when we’re both young enough and healthy enough to do so (fingers crossed). Due to an age gap between us, our hope is therefore for me to retire early (age 58) at roughly the same time as my husband takes retirement (age 66). This timing would have a significant impact on my pension position.
We estimate we would want/need in the region of €55k per year post retirement. Until I reach 65/66, I would not have access to a State pension or public service pension (unsure about my private pension). We would initially be relying largely on my husband’s work and State pension. We estimate we will have a significant gap in income for the first 8 years of retirement. I’d love advice please re the best way to fund that gap?
We can afford to put some more disposable income towards longer term investments for retirement. Specifically, we’re wondering if we should direct that money towards a) my husband’s AVCs which he can access at retirement or b) towards EFTs in my name (eg the incoming Government savings scheme next year -waiting to hear more about this) which I can access? We pool our finances jointly and plan accordingly – this works very well for us - but I probably have a slight uncertainty as to whether option a) leaves me vulnerable financially.. AVCs=more tax efficient but EFTs = more flexibility? (Totally new to investments!)
[As an aside, I realise thinking of retiring at age 58 is quite a luxury and, if needs be, I hopefully can and will work a few more years!]
Any advice or feedback on above would be hugely helpful! Thanks in advance