Just to point out, no matter how unlikely, rates could change in the next two yearsBy not making this payment now, you will pay €1,340 (2yrs x 3.35% = 6.7%) in interest on that sum over 2 years.
It is a fixed rate so the OP will definitely pay €1,340 on €20k over 2 years.Just to point out, no matter how unlikely, rates could change in the next two years
Looking for suggestions on how to retire early if possible.
Really?Depends on what early retirement means for you - if you are thinking thats @60 then I would say it is achievable.
I don't think this is feasible.
Your combined savings and pension funds are only a bit more than twice your net income. You have an 80% LTV mortgage. Neither of these is very low for a couple in their mid-40s.
You are saving a lot, and don't have dependents, but I don't think you can shave much off the next 20 years of pension accumulation you'll need for a comfortable retirement.
There are a few small things you can and should do like move to a cheaper mortgage and your spouse could max out pension contributions. But these aren't going to let you retire in your 50s.
Really?
Out of a gross income of €120k they are making cash and pension savings of €50k a year. This is huge. But even €50k a year for the next 16 years might get them to a joint pension pot of €1.2m at age 60 assuming a reasonable return.
At 60 a man is expected to life to 82, a woman to 85. And from their pension pot that they have to bridge the gap to state pension at 67 or 68.
That's nearly half a century of life expectancy to be funded for a couple. And getting to €1.2m means extremely high level of savings along the way and no interruption to income.
It's feasible, but I think they should budget on the basis of having to work until their mid-60s.
Based on the assumption that OP needs €30k per annum, retiring at 60. that's drawing down €30k from 60-69 and around 10k p.a. thereafter (taking into account state pensions), they would not need anywhere near €1.2m to achieve that.
In isolation, I would say this statement is true but in the OP's case, I think looking back is a good indicator for looking forward.Definitely achievable for a couple with no kids, an an annual expense of 30k, and saving a healthy amount into a pension to retire in 17+ years at 60 having paid off their mortgage.
It depends on good investment returns, no interruption to their income, and a pretty heavy savings schedule in the meantime.
There is a fair bit of downside risk. I would target mid-60s for comfort and if all goes really well retire earlier.
where is the aggressive savings
A couple on €110k gross leaving themselves with €1k a month to live on excluding housing is aggressively saving.
You are indeed correct. My bad.You are double counting the pension contribution.
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