Retired parents

D

Dummy

Guest
Hi

I'm looking for advice for my parents who were living and working in Africa and have now retired back to Ireland this year.

Ages: Both 63

Pension: One pension of £10,000 sterling p/a (not sure if index linked). As they have worked for a long time outside the state (and EU) I don't think they're entitled to a state pension

Property: PPR worth roughly €1 million (hard to know in this market) with mortgage of €70k. Investment property worth approx €350k with mortgage of €250, rent covers mortgage and service charge.

Other assets: Stocks/bonds/cash of approx €350k

Difficult to live in Dublin on that cash flow so they're considering maybe buying in the country and renting PPR (approx €2200 p/m) (they understand the CGT implications) or else selling PPR and buying down the country, for say €600k including stamp, and using balance to pay off investment property and live off rent (approx €1400 p/m) rest of balance and pension.

If they sold PPR would they be better off buying a pension with the balance? What kind of pension could you get for €400/450k (if topping up balance with own assets)?

I know the above are very loose figures but I'd really appreciate anyones thoughts on the above situation. Apologies if I've posted in the wrong forum.

Thanks

Dummy
 
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