How much will she earn in the full year of 2020? I think I've misunderstood numbers.You've hit on a topic we've debated a lot. With taking the time off for maternity, she will only get relief at 20%
How much will she earn in the full year of 2020? I think I've misunderstood numbers.
Assuming you're jointly assessed, flip part of her tax band to you, she keeps 26,300 and anything over that will be high rate, therefore high rate relief if she puts in pension.Normally 50k, would expect 30k in 2020 due to unpaid maternity.
That is a great idea about how to maximise relief for a couple where one is already at max contributions and the other is a lower earner. Worth a key post imo. It's first time I have seen this suggestion.Assuming you're jointly assessed, flip part of her tax band to you, she keeps 26,300 and anything over that will be high rate, therefore high rate relief if she puts in pension.
You're not talking about huge amounts, but might as well keep both pension pots growing.
Just remember, you can pay as much as you want. The 10% is just the limit before the check if a break fee applies. Even if a break fee applies, it will ALWAYS be less than the amount of interest you will save.
You are clearly doing exceptionally well, very healthy pension, healthy equity in your PPR and very good income. My only question is why do you have so much in cash (€130k) and expecting this to rise by another €30k this year? I can understand keeping a larger buffer while your spouse was on mat leave but now surely you should just pay a big chunk (€100k) off your mortgage? If I have read the thread correctly, you have upgraded both cars in the past 2 years so you don't need to hold anything back for purchasing new cars so what other major expense do you see where you need (€130k+) on hand?
It would also have a positive impact on your monthly cashflow if you maintain the term length, reducing your minimum mortgage payment by ~25% (€420k >> €320k)
But overall, well done on planning and controlling your finances so well!
That's correct.
- Pension:
- Me, big 4-0 this year and I'm thrilled! Brings me into the 25% AVC contribution bracket. Aim to max contributions accordingly. As far as I'm aware I can do this on the entirety of 2022 income, regardless of when in the year I turn 40 (open to correction).
Forecast | Actual | Target | Update | |
Mine | 150-155k | 160k | Exceeded | Increase in base salary |
Mrs | 58k | 64.5k | Exceeded | Increase in base salary and better bonus than expected |
Forecast | Actual | Target | Update | |
Mine | 28.5k | 28.5k | Met | 25% allowance used / increase in contributions |
Mrs | 14.5k | 21.6k | Exceeded | 25% allowance used / increase in contributions. Also retrospectively maxed out 2021 |
Last Year | Actual | Target | Update | |
Balance | 400k | 307k | Exceeded | Switched lender & locked in at 1.95% until 2029. Reduced balance by ~90k |
Forecast | Actual | Target | Update | |
Exceptional | 0k | 11.5k | Missed | Home improvements |
Forecast | Actual | Target | Update | |
Savings Rate | 40% | 51.6% | Exceeded | Using this model > Total saved/invested expressed as a % of total earnings (excluding tax). Saved/Invested = Mortgage overpayments, pension contributions (by us & employers), and any after-tax savings |
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