My age 66, wife's age 68
I'm in fulltime employment, 40k gross income, wife is homemaker
No children, both good savers
PPR value 350k, 60k o/s, finishes 2025. Mortgage is 1200pm, tracker 1.5%, with Bank of Ireland
No other borrowings, have credit cards but rarely use.
100k savings on deposit
We both have full state pensions
Small pension, now matured 87k pot (see below)
Other properties : Former PPR in Dublin, rented out since 2004, current rental income 1500pm before tax, upkeep etc., owned outright.
Part owners of 3rd house, sale pending, 100k due to us, before CGT, selling expenses etc (estimate 70k net)
We have private health cover, mortgage insurance, serious illness cover, life insurance, premia total 500pm approx.
All told, we have monthly outgoings of 4000 Euro (have kept detailed records of spending over last 12 months)
So we would be grateful for any answers/suggestions re the following ...
1. Re pension pot:
Option one: Take 46k tax free lump sum, put 41k into low-cost annuity (would provide just 70 Euro per month net, approx)
Option two: Take 25% tax free, put fest into ARF or ARMF (but I don't fully understand what they involve!)
2. I feel that we are over-insured, so considering dropping my wife's serious illness cover (I don't have this cover), to reduce our out-goings when I retire...wise or not?
3. Should we pay off the 60k left on the mortgage? (Again, with a view to reduce monthly out-goings)
4. Is there a better way to make our savings work for us? E.g., a lump sum to a five-year NTMA a/c? If so, how much?
Re the rental property, we intend to keep it at least in the medium term, despite the increasing regulatory hassle. We've been lucky with good tenants...So far! But ideally, we'd like to be able to live reasonably well eventually without the burden of maintaining the rental property.
Thanks in advance for any input...
I'm in fulltime employment, 40k gross income, wife is homemaker
No children, both good savers
PPR value 350k, 60k o/s, finishes 2025. Mortgage is 1200pm, tracker 1.5%, with Bank of Ireland
No other borrowings, have credit cards but rarely use.
100k savings on deposit
We both have full state pensions
Small pension, now matured 87k pot (see below)
Other properties : Former PPR in Dublin, rented out since 2004, current rental income 1500pm before tax, upkeep etc., owned outright.
Part owners of 3rd house, sale pending, 100k due to us, before CGT, selling expenses etc (estimate 70k net)
We have private health cover, mortgage insurance, serious illness cover, life insurance, premia total 500pm approx.
All told, we have monthly outgoings of 4000 Euro (have kept detailed records of spending over last 12 months)
So we would be grateful for any answers/suggestions re the following ...
1. Re pension pot:
Option one: Take 46k tax free lump sum, put 41k into low-cost annuity (would provide just 70 Euro per month net, approx)
Option two: Take 25% tax free, put fest into ARF or ARMF (but I don't fully understand what they involve!)
2. I feel that we are over-insured, so considering dropping my wife's serious illness cover (I don't have this cover), to reduce our out-goings when I retire...wise or not?
3. Should we pay off the 60k left on the mortgage? (Again, with a view to reduce monthly out-goings)
4. Is there a better way to make our savings work for us? E.g., a lump sum to a five-year NTMA a/c? If so, how much?
Re the rental property, we intend to keep it at least in the medium term, despite the increasing regulatory hassle. We've been lucky with good tenants...So far! But ideally, we'd like to be able to live reasonably well eventually without the burden of maintaining the rental property.
Thanks in advance for any input...