Dalai_Alpaca
Registered User
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- 4
We're also looking at public sector pension shortfall similar to yours, though I have bought back some years (3 ish). However I suspended my buy back 2 years ago but I do have a minimal AVC of €25 p/w ongoing which I can apparently put towards further buy back.
Can't seem to get a definative answer on advisability of Buy Back v's AVC's and had set up AVC 16 years ago before I'd heard of buy back option so have just kept it going. The buy back option seems very expensive at initial glance (Approx €120 p/w) v's the "flexibility" of an AVC and also there's the "fatalistic" view of whats the benefit in the expense of buying a full public sector pension if one is unsure about how long one will benefit from it, or even if the state will (be able to) honour it in full, but perhaps that's a misguided view. I'm also wondering with the prospect of changes in pension age is it likely l'lI be able to continue working beyond 65 to make up the missing years?Out of curiousity, what is the thinking with this? Perhaps, you prefer the flexibility of AVCs? But if you are sure you want to buy back your 3 "missing years" why not do it directly rather than first incur the fees and charges that go with an an AVC?
I'm also wondering with the prospect of changes in pension age is it likely l'lI be able to continue working beyond 65 to make up the missing years?
Just wondering how often do ye change your cars? It's nice to be able to replace cars about every 3 years without financing so you have to look at the benefit of being able to do that without a financing rate of say 7-10% APR v's your mortgage interest of 3.1%You have €120k in cash.
It's clear that you should put most of this against your mortgage.
People have suggested that you need a rainyday fund of up to €30k.
You are both civil servants. So your jobs are secure.
You have a combined gross income of €114k
You are both presumably in good health.
You are savers.
You hardly need an emergency fund at all.
Pay the €120k off the mortgage.
Your mortgage payments will be reduced. You can build up your savings again to about €10k. Pay that off the mortgage, and rebuild your savings to €10k. Repeat until mortgage is cleared.
Brendan
the bit that strikes me (aside from the fact that you are in a nice financial position) is that you dont know what your spouse takes home?
I'm wondering why civil servants shouldn't have state savings such as prize bonds?
Just wondering how often do ye change your cars? It's nice to be able to replace cars about every 3 years without financing so you have to look at the benefit of being able to do that without a financing rate of say 7-10% APR v's your mortgage interest of 3.1%
Are you my long lost sibling?We're fortunate that cars are of no interest to us, as long as they run. We've a car each and between us we've owned 4 cars in 15 years. We've never financed one. We tend to spend ~8K when changing.
I'm wondering why civil servants shouldn't have state savings such as prize bonds?
I would speculate that the chances of the state defaulting on savings is very low. Either way, I won't be putting all the eggs in that basket.
Are you my long lost sibling?
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