The thing is though that your fund would still be getting investment returns after retirement. If you're taking 4% per year (24k) and it's getting a 5% investment return it'll be worth more than €600k when you die. Good for the kids though I suppose.I assumed a 4% annuity rate for simplicity.
So, €24k x 25 = €600k.
Yeah, that's kind of the way I think, do you need a big pension pot if you've no dependants or not planning on leaving it to someoneThe thing is though that your fund would still be getting investment returns after retirement. If you're taking 4% per year (24k) and it's getting a 5% investment return it'll be worth more than €600k when you die. Good for the kids though I suppose.
You might as well have nothing left when it's time to go into the old folks home or the state will have itYeah, that's kind of the way I think, do you need a big pension pot if you've no dependants or not planning on leaving it to someone
My plan is to have fairly well depleted my funds by 80, that's if I live that long and all that will be left of value is the house
which I suppose one of my nieces on my wife's side will get
Or invest and manage one’s wealth to endure that you have enough to pay for it yourself.You might as well have nothing left when it's time to go into the old folks home or the state will have it
Or just stay at home instead? Most people in their 80s and beyond have no need to be in a nursing home.You might as well have nothing left when it's time to go into the old folks home or the state will have it
It seems somewhat circular in that if you have a decent level of income and assets, you get tax relief at the 40% rate so the cost of nursing home care isn’t that bad relative to having to game the system or lose some of the value of your assets.Agree with you here GG for the most part as in I don't agree with the idea of offloading your assets so as to avoid the cost
If you cant afford a nursing home, fair enough the state has a mechanism to help with this
But if you can, pay the bill and don't be expecting other people to
I looked at the thread and enjoyed it! You saved 800 kWh electricity with the free Sunday but some of this would have been normal usage like fridge, TV, etc. Even if I generously assume 600 kWh was usage you shifted to Sunday from other times that's still only a saving of €150 per annum at a marginal unit of 25c.
Thank you,I looked at the thread and enjoyed it!
Think I've just worked out where your getting the "marginal unit of 25c" fromI'm not sure what or even where the "marginal unit of 25c is coming from and how it is relevant in the scheme of things when I've quoted the exact rates that were available at the time
Oh absolutely, I've no desire to ever darken the doors of such a place.Or just stay at home instead? Most people in their 80s and beyond have no need to be in a nursing home.
There's more than one way to skin a cat.Or invest and manage one’s wealth to endure that you have enough to pay for it yourself.
What’s FTP?My parents are aged 75+, combined gross income around 52k. They pay under 10% direct income tax, and get:
- Two medical cards
- Two FTP
- 35pm off elec bill = 420 pa
- Free TV licence
They have health insurance.
As well as regular saving of 750 into one bank, my father tells me that his current account balance keeps building up and up.
They physically couldn't spend their income, so it looks to me like the reported figure of 43,200 for a couple is very fair.
Free travel pass?What’s FTP?
Preparing reports like this is hardly the main job of the Pensions Council.
According to its website, the Pensions Council's role is to advise the Minister for Social Protection on pensions policy. Yet, minutes of meeting for the last four years indicate no discussion of the most important pension policy decision in decades, viz., whether the auto-enrolment pension scheme which has now been enacted into law is right for the country.
For example, there seems to have been no discussion whatsoever of:
Discussion of such policy issues is far more important than opining on how much pension is needed for a comfortable retirement.
- the decision to opt for a 1 for 3 government top-up to member contributions instead of "normal" tax relief
- the decision to structure AE pensions exactly the same as individual pensions, with exactly the same drawbacks.
- the charge under AE, and how it will be structured, e.g., % of AUM, % of contributions, fixed amount per member (active or frozen). The DSP seems to have opted for the latter to cover the cost of administering members' accounts. This discriminates against the low-paid and workers with frozen accounts, which the DSP prohibits commercial providers from doing.
- the decision to default workers, even those with no knowledge of investments, into the highest risk fund until age 51 precisely, at which point they're moved into a lower-risk fund, even if the market tanked the week before they reached that age.
- Dropout rates. Dropouts under the NEST scheme, on which the Irish scheme is modelled, are 29% a year. A personal belief is that high dropout rates under AE are partly due to workers not having an adviser to reassure them when markets fall. If the Irish scheme has similar dropout rates, then less than 30,000 of the DSP's projected 800,000 starters will be still contributing after 10 years; the other 770,000 will have fallen by the wayside. That would be a disaster, yet the Pensions Council seems never to have discussed the risk.
An official from the DSP told the Joint Oireachtas Committee that it was hoped that the Irish scheme would have lower dropout rates. Research supporting this conclusion was mentioned at the meeting, but was never published nor discussed by the Pensions Council.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?