Financial Mid Life Reset

[Reallife]

Hello,

I’m not sure if this is the correct forum but i am looking for advice please.

The Scenario:
Single Mid Lifer with no dependents. Recently returned to paid employment after long period of carers leave hence no pension contributions since 2006 approx.
Age: 56
Mortgage: Outstanding €145K
Pension Currently Paid Up: approx €40K
Employment Status: Freelance Earnings Vary Gross 40 -70k Pa
No Debts other than Mortgage
Savings : €150K


Advice please on best way to use my savings to fund a pension which would give me a decent income upon retirement.

 

[jpd]

Pay off your martgage and start putting your mortgage payments into a pension

To get more relevant advice, you need to post the interest rate you are paying

 

[Reallife]

Hi Jpd,

Mortgage is a tracker approx 1% apr with around 9 years remaining at current repayments.

That’s interesting advice as I thought keeping a tracker was prudent and I should find a way to maximise my savings and invest a good part ( but not all) of them in a pension.

The house needs some remedial works carried out on the Roof, fascia’s and a new heating system etc so will need to dip into savings for that.

It’s important to me to retained some easily assessable savings in case of accident / illness or some other emergency where I would not be able to earn an income for a period of time.

I wonder if anyone could recommend a financial advisor that I could speak to with regard to this and also about the possibility of income protection or critical illness for freelancers?

Thank you in advance

 

[jpd]

Currently, you are borrowing 145K @ 1% to fund savings earning ? % - this is why generally, it is best to repay outstanding loans as soon as it is prudent

But, as you indicate, it is important to have an emergency fund - usually 6-12 months of income is adequate - and you have also indicated the need to fund repairs/updates to the house

Sorry, I do not have any recommendations but no doubt they will be forthcoming

 

[Reallife]

Currently, you are borrowing 145K @ 1% to fund savings earning ? % - this is why generally, it is best to repay outstanding loans as soon as it is prudent

But, as you indicate, it is important to have an emergency fund - usually 6-12 months of income is adequate - and you have also indicated the need to fund repairs/updates to the house

Sorry, I do not have any recommendations but no doubt they will be forthcoming

Thank you jpd.

 

[Peanuts20]

My starting point on any of these is to review your taxes, see if there is any return you can do for previous years and check that you are set up in the most optimal fashion going forward. Given you are a free lancer, it might be worth an hours conversation with a professional Tax advisor, especially if you up your pension contributions

Have you checked to see what state pension you will be entitled to when the time comes?

Not sure what you mean by "Pension Currently Paid Up: approx €40K" is it 40k in your pension fund? That sounds very light and would suggest you only paid into it for a handful of years. Is that correct?

You need to turn this a little on it's head and try and figure out what you need to survive comfortably on in retirement and then start figuring out how to get there

Also, as a single person, is downsizing an option?

 

[Reallife]

My starting point on any of these is to review your taxes, see if there is any return you can do for previous years and check that you are set up in the most optimal fashion going forward. Given you are a free lancer, it might be worth an hours conversation with a professional Tax advisor, especially if you up your pension contributions

Have you checked to see what state pension you will be entitled to when the time comes?

Not sure what you mean by "Pension Currently Paid Up: approx €40K" is it 40k in your pension fund? That sounds very light and would suggest you only paid into it for a handful of years. Is that correct?

You need to turn this a little on it's head and try and figure out what you need to survive comfortably on in retirement and then start figuring out how to get there

Also, as a single person, is downsizing an option?

Hi Peanuts20,

Thank you for your reply.

You’ve got it, that’s exactly what I am trying to do, to maximise what I currently have and figure out what I need to put by to live comfortably in retirement.

I’m already downsized and would actually love more space especially outdoor space.

Yes, the pension was only contributed to for a few years and I now need to make up as far as possible. I paid approx 30K and it’s current value is €55K with an annuity of €2270pa - need to improve that figure as much as possible. I should also be entitled to a full contributory pension however much that will be in the future.

Would you know where to start looking for a reliable reasonably priced tax / financial advisor?