RandomUserName
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Good morning,
Age:32
Spouse:34
Gross:€52k
Spouse:€8k-12k (tax free)
Take home monthly:~€3k
Spouse:€700-€1200
Sector: Public Sector
Spouse: stay at home parent, also registered childminder in the home
Home value: ~€240k
Outstanding:~€114k over 27.5yrs
Rate: 2.35%
Monthly:~€470
Car loan: ~€430pm (0% HP, EV so fuel bill savings of ~€300pm Vs previous car)
No credit card or personal loans
Savings: ~€12k
One 3 yo child
Mortgage life insurance and personal life insurance for both of us in place
General situation: mostly been breaking even over recent years, and paid off personal loans. In a position to save more consistently now and with upcoming promotion will increase regular savings.
The plan: I am a post-2004 entrant to the Defence Forces. Under our fast-accrual pension system, I will have 40 years service at 50 years of age (each of last 10 years counts double), and be entitled to retire at that age, with a mandatory retirement age of 56. Cannot get a straight answer regarding supplementary pension at that age, but assuming I can secure that entitlement I would expect a pension of approx €30k. Ideally I would intend to be fully retired from 56 as the supplementary pension system is a major disincentive to take on other paid employment.
What I'd like some advice on, is how best to provide a pension/income for my wife in this situation? She is currently working in the home and is a registered childminder. As such, she can earn a tax free income of <€15k and I can avail of her tax credits and higher standard rate cut off. She pays class S PRSI each year of €500, giving her entitlement to maternity benefit and state contributory pension.
I had been under the impression that I could put money into an AVC to provide a fund for her retirement, but I now realise this is not the case as I will have full service and get 1.5 times final salary lump sum and cannot use AVC to increase this (correct?).
Specific query: Would it be best for us to start overpaying our quite modest mortgage, potentially we could afford to clear it in 10 years (early 40s), or my preferred option, is there a tax deductible way to fund a pension for my wife? We would like to have ~€10k pa for her from age 58 until her state contributory pension kicks in (presumably 70+ for our generation)
Any and all observations or suggestions will be welcome!
Thanks
Age:32
Spouse:34
Gross:€52k
Spouse:€8k-12k (tax free)
Take home monthly:~€3k
Spouse:€700-€1200
Sector: Public Sector
Spouse: stay at home parent, also registered childminder in the home
Home value: ~€240k
Outstanding:~€114k over 27.5yrs
Rate: 2.35%
Monthly:~€470
Car loan: ~€430pm (0% HP, EV so fuel bill savings of ~€300pm Vs previous car)
No credit card or personal loans
Savings: ~€12k
One 3 yo child
Mortgage life insurance and personal life insurance for both of us in place
General situation: mostly been breaking even over recent years, and paid off personal loans. In a position to save more consistently now and with upcoming promotion will increase regular savings.
The plan: I am a post-2004 entrant to the Defence Forces. Under our fast-accrual pension system, I will have 40 years service at 50 years of age (each of last 10 years counts double), and be entitled to retire at that age, with a mandatory retirement age of 56. Cannot get a straight answer regarding supplementary pension at that age, but assuming I can secure that entitlement I would expect a pension of approx €30k. Ideally I would intend to be fully retired from 56 as the supplementary pension system is a major disincentive to take on other paid employment.
What I'd like some advice on, is how best to provide a pension/income for my wife in this situation? She is currently working in the home and is a registered childminder. As such, she can earn a tax free income of <€15k and I can avail of her tax credits and higher standard rate cut off. She pays class S PRSI each year of €500, giving her entitlement to maternity benefit and state contributory pension.
I had been under the impression that I could put money into an AVC to provide a fund for her retirement, but I now realise this is not the case as I will have full service and get 1.5 times final salary lump sum and cannot use AVC to increase this (correct?).
Specific query: Would it be best for us to start overpaying our quite modest mortgage, potentially we could afford to clear it in 10 years (early 40s), or my preferred option, is there a tax deductible way to fund a pension for my wife? We would like to have ~€10k pa for her from age 58 until her state contributory pension kicks in (presumably 70+ for our generation)
Any and all observations or suggestions will be welcome!
Thanks