Just bear in mind you are only building up pension rights pro rata. So 8 years on a three day week means you've lost about 3 years of contributions.Im not sure about this I assume we get a civil service pension ? But we both reduced our hours to work 3 days a week , we are both working 3 days a week since 2013.
Yes if we paid off the mortgage we would have 50k left and 50k in investment accounts and be able to save 5k a year ( in theory ) .So if you paid off the mortgage, instead of spending 5k savings each year, you could save 5k per year.
It seems to me that it would simplify things, and also be less stressful if you can be debt free and see your savings grow every month. You just need to find the right way to get the best return on them seeing as you probably have kids 3rd level education coming down the track.Yes if we paid off the mortgage we would have 50k left and 50k in investment accounts and be able to save 5k a year ( in theory ) .
Highly unlikely! By 65 you will have a household gross €4.5-€5k a month DB, index-linked pension and lump sum of around €100k each. You will have a mortgage paid off too.or probably end up underfunded when we retire
Them figures seem very high. I haven't looked at it in detail I just know of people retiring that are same grade as myself not getting 100k lump sum.Highly unlikely! By 65 you will have a household gross €4.5-€5k a month DB, index-linked pension and lump sum of around €100k each. You will have a mortgage paid off too.
You are financially very well set up for retirement as it stands and you have €200k to spare. Your challenge is mainly about how fast you spend your savings
What grade are you on and increment?4.5-5k seems way high too .
Yearly probably average spending 5k out of savings.
210k state savings accessible from Nov 2022
50k in shares , 10 blue chips split equally.
I'm worried about access to money going forward that has me reluctant to pay off mortgage.
I'm worried about access to money going forward that has me reluctant to pay off mortgage.
As well as having access to savings, he is in a position to increase them by 5k per year against the day when the expenditure on kids increases.You should not be reluctant to do this after November next. You will still have plenty of savings. And by clearing your mortgage early, you will not be making mortgage capital repayments or paying interest.
It is clear that you should clear your mortgage. The only decision is whether to do it now or next year. I assume that next year is best.
Brendan
If you are both working 3 days per week is there one day per week where you have no cover at home? How is that working for childcare costs. Would there be a possibility that you could increase your hours while still working 3 days, say do 3x10 hr days? This would increase your take home pay & perhaps reduce your worries. But taking the kids to activities would suffer. Even if you spent €5K extra per year from your savings it would still take 40 years to use them up.
I would pay off the mortgage, this freed up €10K earnings per year, which you can spend €5K and save €5K. I would also be very clear with the kids what your budget is and how you need to carefully spend each month. The 2x non autistic kids should be brought up to understand that they need to get a part time job, and help fund themselves through college if that is what they want to do. You have no idea about the future costs of you two autistic kids, one turns 18 in 7 short years and what happens then is probably all up in the air.
Do you have the Domiciliary Care Allowance? You don’t mention that and you should apply for it, then when your child turns 16 you can transition to a disability allowance? This will bring in an income to fund therapies and activities for the autistic children.
And ask at work about your pension? And check out your bank statements for the mortgage and you will see how much you pay in interest and capital. The citizens advice bureau has a whole lot of helpful information.
Would it be best to invest this whole 100k ?
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?