BertieBowel
Registered User
- Messages
- 23
Hi there,
I’m currently 50 years of age and trying to figure out how I could retire in 10 years time at 60.
Pension arrangements:
Preserved DB pension from previous employment payable at 60 €12k p.a.
DB Pension from current employment payable at 65 est. 38k p.a. If I left the employment at age 60 I would have accumulate benefits of c. €32k p.a. payable at age 65. (assuming scheme is still alive at that stage!!)
AVC’s with current Pension Scheme c €8k p.a.– current value €130k. At current contribution rate and growth of say 2%, the AVC’s could be worth in the region of €250k in 10 years time.
Mortgage
Tracker mortgage €92k o/s /€1400 p.m / c. 5 years remaining
Between myself and my wife (who also has an occupational DB pension), I reckon that we would need between €250k and €300k saved by the time I reach 60, to bridge the gap between retiring at 60 and when my pension kicks in at 65. This would provide us with the income we think we need for a good retirement.
I have 2 questions that I hope to get some help with:
Any advice on this would be much appreciated.
I’m currently 50 years of age and trying to figure out how I could retire in 10 years time at 60.
Pension arrangements:
Preserved DB pension from previous employment payable at 60 €12k p.a.
DB Pension from current employment payable at 65 est. 38k p.a. If I left the employment at age 60 I would have accumulate benefits of c. €32k p.a. payable at age 65. (assuming scheme is still alive at that stage!!)
AVC’s with current Pension Scheme c €8k p.a.– current value €130k. At current contribution rate and growth of say 2%, the AVC’s could be worth in the region of €250k in 10 years time.
Mortgage
Tracker mortgage €92k o/s /€1400 p.m / c. 5 years remaining
Between myself and my wife (who also has an occupational DB pension), I reckon that we would need between €250k and €300k saved by the time I reach 60, to bridge the gap between retiring at 60 and when my pension kicks in at 65. This would provide us with the income we think we need for a good retirement.
I have 2 questions that I hope to get some help with:
- Is there anyway I could access the AVC fund at age 60 even though the pension won’t be paid until 65. I have been advised (informally) that I could transfer the AVC’s from the current pension fund and into another approved vehicle. Would it be possible to do this and then access then at 60 in the form of a lump sum (taking as much as possible tax free and paying std rate tax on the remainder)
- If accessing the AVC’s isn’t an option then I will probably stop paying into then. If I redirected the AVC payments to my mortgage I could finish 1.5 years earlier in 3 years time. This would then leave me with €1800 p.m (current mortgage repayment of €1400+€400 over payment) to save/invest for 7 years up to the age of 60. Is there a tax efficient option to save this money on the basis I won’t want to access it until retirement at 60?
Any advice on this would be much appreciated.