Mortgage nearly cleared where to focus on next


Registered User
Age: 36
Spouse’s/Partner's age: 35

Annual gross income from employment or profession: €74,000 with potential 25% bonus received the last few yrs this will be limited this yr with COVID and may not return.

Annual gross income of spouse: €61,000 Public Sector

Monthly take-home pay €6950

Type of employment: Private Sector, Spouse Public

In general are you:
(a) spending more than you earn, or
(b) saving?

Rough estimate of value of home €380,000
Amount outstanding on your mortgage:
€21,000 repayments €155/month 15 yrs remaining
What interest rate are you paying?
2.75% with AIB variable haven’t fixed as nearly full bonus has been used to pay down aggressively last couple of years hope to pay off this yr if bonus is realised but definitely over next 2 years.

Other borrowings – car loans/personal loans etc None

Do you pay off your full credit card balance each month?
If not, what is the balance on your credit card?

Savings and investments:
Currently €45,000 in different accounts. Spouse circa €15k also. Child Benefit is paid directly into State Savings account for them to be given access after College for house deposit or travel or whatever they want.

Do you have a pension scheme?
Yes me Private sector value €87,000 contributing 5% and Employer paying 6.5%. Paid AVC last yr of €4k for 2019. Spouse Public Sector pension plus paying AVC via Cornmarket of circa 2.5%/yr. This is one of my questions is this worth it? She is PS worker since 2006

Do you own any investment or other property?
Yes spouse has house worth circa €250,000 mortgage paid. Current Rental income €1500/month gross.
Ages of children:
5, 3 and 3rd due this yr

Life insurance:
Area to be looked at. Linked to Mortgage currently at €138k reducing as term reduces specified Illness of €43k again reducing premium €19/month. Work pays out 4 times salary on Death in Service to family plus value of pension. Work policy is to pay 1 month sickness benefit if signed off sick. Spouse PS employee not paying any extras 6 months full pay and 50% thereafter and cancelled mortgage insurance when mortgage finished. Again this is an area we need to review.

What specific question do you have or what issues are of concern to you?

With Mortgage nearly paid what should we be targeting next?

-Max pension contributions but currently my company online calculator showing my pension will be circa €20 to €25k on retirement (I know this could go either way etc) seems to excl state pension don’t believe I need much more than that, as spouse will have Public Sector pension also. When run the same calculation on pension authority website only shows pension of €12k per yr which is different story how can they be so different maybe the company one includes the state pension for some reason? Am I looking at this incorrectly re value?

-Should we set up regular investment fund with Irish Life or Zurich?

-The rental is fine don’t mind the up keep its small the issues are a bit of pain when they arise but generally only big issues once every yr or 2.

-Life insurance should this be looked at or income protection(don’t particularly believe in paying this just my thoughts due to current circumstances expenses would be only living expenses etc but not strong held beliefs could be swayed).

-Also spouses AVC is it worth it or waste of time various colleagues have different views on this in the Public Sector?