Yes it is an emergency fund. I am currently saving about €300 p.m. into it so I could redirect that to a PRSA/investment and keep the €15k in cashIs the 15k savings your emergency fund (6 months living expenses)? If so you shouldn't do anything with it except put it in the highest interest rate savings account available.
What is your loan to value on your mortgage? Is there any way you can switch mortgage providers to get a lower rate of interest? If you can this should be the first thing you should do, as it can save you thousands.I have 24 years left on a mortgage - about €140,000 remaining @ 3.6%
With any kind of investment, the earlier you put money in, the longer you've got for compound interest to work it's magic.I thought if you invest in PRSAs etc when you're younger it's better than waiting til the mortgage is paid off?
On the other hand, if you are paying tax at the higher rate, then I'd start paying into a pension.
Surely his pension pot would be a major asset at this stage also. I am guessing it would be worth a fair bit by retirement age, given it is effectively risk free. Without knowing salary there is no idea of putting a figure on itI'd rather not have 90% of your net worth tied up in a single house at age 55.
Without knowing salary there is no idea of putting a figure on it
If the state pension was gone it would be hard to live on €25k I reckon even mortgage-free
Do Civil Servants get a state pension on top of their DB pensions? I thought they did not ! The 35/80 times salary included the old age pension. Others open to correct me on this
BTW the vast majority of people your age in Ireland will be living on less than 25k once they hit retirement
Would I be entitled to tax relief on a PRSA when I have a state pension contribution?
Do Civil Servants get a state pension on top of their DB pensions? I thought they did not ! The 35/80 times salary included the old age pension. Others open to correct me on this
Oh! I really don't know about pensions which is why I'm trying educate myself and plan now.
That €25k would be gross too subject to income tax right?
OP, have you explored the possibility of buying 'added years' from your employer to make up for the 4 year shortfall at age 65? There is a thread on here about whether or not it is worth it but it is an option. See here: http://www.askaboutmoney.com/threads/should-i-buy-years-or-contribute-to-an-avc-prsa.60842/
Ah! Just re-read your OP. See that now.Thank you yes I got a quote but I am slow to do it as I don't know if I will stay in my current job until retirement so this puts me off as I don't know if it would still be of benefit.
This person is 39, and joined the PS aged 30, so joined after 1995.
So they are paying PRSI class A at 4%, and should get a CSP.
The PS pension will be adjusted due to this.
The PS pension component will not be (35/80)(final salary), it will be less.
This is very important for you to consider this. As people hit their 40's and 50's pension entitlements become very important. You need to understand what the impact of changing job would be in this area and whether you would actually benefit both short and long term from itThank you yes I got a quote but I am slow to do it as I don't know if I will stay in my current job until retirement so this puts me off as I don't know if it would still be of benefit.
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