Is this enough to retire on?

Good Lord, I would have thought you understood I was talking about people paying their money into pension funds or whatever you want to call them. I'm extremely aware where the state pension comes from and take exception to your line of thinking that the public don't understand.
 
The latest projections done by the European Commission for Ireland see the total cost of public pensions going from 5% of GDP to 7% of GDP over the next 30 years. This is on the basis of demographics and the assumption of keeping current policy around eligibility in place.

This is a challenge, but not an impossible one.

Some posters here think that the policy response will be to see this number go to 0% of GDP through the abolition of the contributory state pension. This is not going to happen.

So I think it would be foolish to plan on the basis of its abolition, but wise to accept that it may not be as generous, by as much as 20% in real terms.
 
I don’t remember anyone suggesting that it would be abolished.

However, I don’t think it’s outlandish to suggest that someone with a private pension fund worth circa €1m might be in the firing line when the State Pension system comes under strain.
 
But one can expect the SF’s , the PBP’s etc argue that “millionaire pensioners” should not get a State Pension as well.
Worth remembering that not alone is the State Pension not “funded” but neither is the occupational pension paid to Civil Servants. That’s a significant unfunded liability (and growing) which has to be funded first out of current taxation.
 
I strongly suspect that pensions (public and private) will be taxed to a much greater extent.

The contributory state pension will never be means tested though, although eligibility (contributions) will inevitably be tightened and the age may be extended further too.
 
NoRegretsCoyote said:
The contributory state pension will never be means tested though, although eligibility (contributions) will inevitably be tightened and the age may be extended further too.
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Strongly agree.

The idea that the State could means-test (what will then be) approximately a third of the population is fanciful. Even if it was politically acceptable, it would be an administrative nightmare.
 
I then to agree with sarenco & co, although the additional dependent part of SP was means tested for new applicants (in late 2000s if I recall correctly )

Means testing is unfair and provides perverse incentives
 
MrEarl said:
Personally, I would suggest that €925k shared between two people is relatively low, not withstanding the fact that both of you will get the State pension in due course.

If you are in a position to put more into your pension fund, to provide for both yourself and your wife, then you should definitely do so. Tax breaks on pension contributions can assist, if there is a regular taxable income coming into your home.
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He has nearly a mil in a pension pot and will get a miserly 30K for 20 years if he's lucky. He should buy a property divided into 3 flats for about 150K/200K getting about 130 per flat gives him an income of 20K, while keeping the asset. And the income will go entirely to his wife should he die at 66. Plus the asset too, tax free.

If it were me and I had access to his pot I'd buy 6 properties and have an income of 120K. (rough figures and not Dublin)
 
Hi Bronte,

Are you saying there be a place where a c. 13% yield is available (120/925)? Would you care to share please?
 
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