Hi, im trying to decide whether to increase my mortgage repayments or to buy back years.
Jointly assessed we are a married couple, 40s, kids, currently on the higher tax rate.
Anyway, ive only now received cost of buying back years from dper.
Im hoping to retire at 60. By then i will only have approx 22 years service withoit added years. I am a pre 2005 civil servant. I was thinking of just buying say 10 years.
The figures i received are as follows:
To purchase 10 years by periodic deductions, it would cost 2.5% of gross salary and 18.4% of net salary (€9,242.77 p/a or €354.27 per fortnight).
(What is the nett cost of that coming out of my wages? We are jointky assessed.)
To purchase your shortfall, 18 years 246.8 days, by periodic deductions, it would cost 4.7% of gross salary and 34.4% of net salary (€17,261.95 p/a or €661.63 per fortnight).
At the moment, my husband has two pension plans.
1 is a lumpsum with zurich. Which he started in 2012 when he put in 31227.22 this is currenly valued at 42499.38 euro. Management charge is 1%.
2 is a monthly payment prnsuon plan called freedom in retirement with zurich. Current premium is 320 per month. Current fund value is 18420.47 2 managemnt charges of 1 % , two types of fund.
Xxxxxxxx
Mortgage
Our mortgage repayments are 1358.84 per month rate is 3.5 per cent variable. With boi. Balance outstanding is 261032 on mortgage . Term ends on 1/1/2041.
Im not great on sums
Im thinking we should just cancel the zurich monthly pension and put the money into buying back years for me? Dont know how many years that would give me?
Any thoughts.
Jointly assessed we are a married couple, 40s, kids, currently on the higher tax rate.
Anyway, ive only now received cost of buying back years from dper.
Im hoping to retire at 60. By then i will only have approx 22 years service withoit added years. I am a pre 2005 civil servant. I was thinking of just buying say 10 years.
The figures i received are as follows:
To purchase 10 years by periodic deductions, it would cost 2.5% of gross salary and 18.4% of net salary (€9,242.77 p/a or €354.27 per fortnight).
(What is the nett cost of that coming out of my wages? We are jointky assessed.)
To purchase your shortfall, 18 years 246.8 days, by periodic deductions, it would cost 4.7% of gross salary and 34.4% of net salary (€17,261.95 p/a or €661.63 per fortnight).
At the moment, my husband has two pension plans.
1 is a lumpsum with zurich. Which he started in 2012 when he put in 31227.22 this is currenly valued at 42499.38 euro. Management charge is 1%.
2 is a monthly payment prnsuon plan called freedom in retirement with zurich. Current premium is 320 per month. Current fund value is 18420.47 2 managemnt charges of 1 % , two types of fund.
Xxxxxxxx
Mortgage
Our mortgage repayments are 1358.84 per month rate is 3.5 per cent variable. With boi. Balance outstanding is 261032 on mortgage . Term ends on 1/1/2041.
Im not great on sums
Im thinking we should just cancel the zurich monthly pension and put the money into buying back years for me? Dont know how many years that would give me?
Any thoughts.