Civil Servant- wants to retire at 60,also considering moving house

C

Cailte53

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Age: 51

Spouse’s/Partner's age: 48

Annual gross income from employment or profession: 50,000
Annual gross income of spouse: 45,000

Monthly take-home pay. 2780e for me. 2450 for husband

Type of employment: e.g. Civil Servant, self-employed- both Civil Servants

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

Rough estimate of value of home. 325k
Amount outstanding on your mortgage: 138k
What interest rate are you paying? Tracker mortgage

Other borrowings – car loans/personal loans etc
Husband has several loans,I have none.

Do you pay off your full credit card balance each month? I do.
If not, what is the balance on your credit card?

Savings and investments:

54k in easy accessible savings account (house in need of renovations)
14k maturing in State Savings in 2022
6,500e maturing in State Savings in 2023
125k maturing in State Savings in 2026


Do you have a pension scheme? Civil Servants, yes,both post 1995
Do you own any investment or other property? No

Ages of children: None

Life insurance: Yes

What specific question do you have or what issues are of concern to you?

(1) I am post 95,paying Class A PRSI and wish to retire at 60,as I will have 33 years service by then. My pension is an integrated one and I don't want my savings to affect my getting all my pension entitlements,such as a supplementary pension (which Pre 95 colleagues dont have to worry about) from age 60,until State pension kicks in at 67 or 68. Do I have to worry about this?

(2) We are not happy in our actual house(bought in 2006 at a hugely overflated price and in very bad condition). Location wise,neighbours and facilities nearby,we are very happy. We havent moved because we got so badly burned and are afraid of losing a load of money,a second titi and in the present market.My savings are from the sale of a previous house I owned,which I sold to buy,to get a deposit to buy with my husband. Do I wait some more years to look as prices are crazy right now? Do I try to spend more money on improving a house that has broken our spirits and cost thousands already over 15 years?

(3) I am risk averse so if I dont use savings to move house,should I just put back into State savings?

Note- I do enjoy life with my husband,regarding holidays,meals out etc
 
Just to make you feel better. By having a tracker, and taking the additional interest tax relief into account, you will probably pay less overall, including interest, than someone who bought an identical property at 2012 prices. So don't beat yourself up over paying a high price, instead congratulate yourself on going for the tracker.
 
Q3. Are you making any AVC contributions.? As you will be below the full 40 years of service, you will have capacity to boost your tax free lump sum.
That would be a good use of your some of your savings, as you could claim 40% tax relief on your contributions.

For example,

Currently you are heading for a tax free lump sum of 61875 Euros, after 33 years of service and a salary of 50k. But you could claim a tax free lump sum of 75k ( 1.5 times your taxable income). So you could contribute the difference into an AVC, claim 40% tax relief and maximise this sum.
You don't need to do this immediately and it might make sense to wait until just before you retire. But it is very safe with no risk and a guaranteed return.
 
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