Age:
57
Spouse’s/Partner's age:
54
Annual gross income from employment or profession:
€96,000 - public sector
Annual gross income spouse:
€100,000 - private sector
Monthly Take Home pay:
C €7,500 per month.
Expenditure pattern:
Until recently we would have 'broke even' - in recent years we have some surplus cash.
Saving available c€1,500
Rough estimate of value of home
€350,000
Mortgage on home
€130,000
Mortgage provider:
AIB
Type of mortgage: Tracker, interest only, fixed rate
Tracker
Interest rate
1.1%
Other borrowings – car loans/personal loans etc
House Repair Loan- €7,500 ´@5.6%; one year remaining - I intend to pay this shortly in full from savings.
Two cars both paid and for now in good condition. When replacement comes around would likely go to one car.
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
€23,000 savings on hand (what’s left of college/emergency fund) – currently pay c€350 per month to this fund.
€40,000 which will be available later this year – this will be taken up with home improvement & other identified spending.
Do you have a pension scheme?
Yes - pre 95 public pension & c€25,000 AVC.
Spouse - company scheme; contribution 5% matched by company plus voluntary contribution to bring up to max ; current value c€230,000 .
Do you own any investment or other property?
No.
Ages of children:
1 -22
2 - 20
Both at college and a big draw on funds at the moment - Child 1 away from home, Child 2 at home. Child 1 has one more year and will be off the books then saving approx.. €13,000 PA. Child 2 has two more years and possibly more if decided to progress.
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
I intend to retire in 2027 on full pension, my spouse would like to retire as soon as possible but at the latest 2026. Our mortgage is due to be cleared in 2029. We currently have c €1,500 extra available per month – this is likely to increase
Questions
Key Question: How do we maximise the monies available to us for retirement in the relatively short time available.
Supplementary Questions
a) My spouse’s is currently paying the max for pension – is their other options to improve on this; for example through setting up a Directors Pension . Can the company contribution increase or must it stay within the overall max limits?
b) Regardless of increasing contributions my pensions will be relatively much better than my spouses and jointly we will likely be at the higher tax rate – in that context would it make sense to use some other saving/investment mechanism rather than focussing on increasing my spouses pension?
c) I have an AVC of €25,000 built up pre crash on the basis that I would be retiring early and would not have full public service pension. I stopped paying in to this after the crash and now circumstances have changed and I now intend to retire on full pension. What can I do with the money from the AVC in these circumstances?
d) Our mortgage is not due to be cleared until 2029; 2/3 years after we retire. I would like to have this cleared pre-retirement – does it make sense to increase our mortgage payments now given we are on a tracker? I understand the arguments against it but given our age profile I would just like to be rid of it.
e) Any other advice appreciated. Thank you.
57
Spouse’s/Partner's age:
54
Annual gross income from employment or profession:
€96,000 - public sector
Annual gross income spouse:
€100,000 - private sector
Monthly Take Home pay:
C €7,500 per month.
Expenditure pattern:
Until recently we would have 'broke even' - in recent years we have some surplus cash.
Saving available c€1,500
Rough estimate of value of home
€350,000
Mortgage on home
€130,000
Mortgage provider:
AIB
Type of mortgage: Tracker, interest only, fixed rate
Tracker
Interest rate
1.1%
Other borrowings – car loans/personal loans etc
House Repair Loan- €7,500 ´@5.6%; one year remaining - I intend to pay this shortly in full from savings.
Two cars both paid and for now in good condition. When replacement comes around would likely go to one car.
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
€23,000 savings on hand (what’s left of college/emergency fund) – currently pay c€350 per month to this fund.
€40,000 which will be available later this year – this will be taken up with home improvement & other identified spending.
Do you have a pension scheme?
Yes - pre 95 public pension & c€25,000 AVC.
Spouse - company scheme; contribution 5% matched by company plus voluntary contribution to bring up to max ; current value c€230,000 .
Do you own any investment or other property?
No.
Ages of children:
1 -22
2 - 20
Both at college and a big draw on funds at the moment - Child 1 away from home, Child 2 at home. Child 1 has one more year and will be off the books then saving approx.. €13,000 PA. Child 2 has two more years and possibly more if decided to progress.
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
I intend to retire in 2027 on full pension, my spouse would like to retire as soon as possible but at the latest 2026. Our mortgage is due to be cleared in 2029. We currently have c €1,500 extra available per month – this is likely to increase
Questions
Key Question: How do we maximise the monies available to us for retirement in the relatively short time available.
Supplementary Questions
a) My spouse’s is currently paying the max for pension – is their other options to improve on this; for example through setting up a Directors Pension . Can the company contribution increase or must it stay within the overall max limits?
b) Regardless of increasing contributions my pensions will be relatively much better than my spouses and jointly we will likely be at the higher tax rate – in that context would it make sense to use some other saving/investment mechanism rather than focussing on increasing my spouses pension?
c) I have an AVC of €25,000 built up pre crash on the basis that I would be retiring early and would not have full public service pension. I stopped paying in to this after the crash and now circumstances have changed and I now intend to retire on full pension. What can I do with the money from the AVC in these circumstances?
d) Our mortgage is not due to be cleared until 2029; 2/3 years after we retire. I would like to have this cleared pre-retirement – does it make sense to increase our mortgage payments now given we are on a tracker? I understand the arguments against it but given our age profile I would just like to be rid of it.
e) Any other advice appreciated. Thank you.