What is your personal retirement target sum?

T

theObserver

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I'm curious. What is your personal retirement pot goal? Or: how much money do you need before you can retire comfortably?

My own is 545,110.37 by 2042 when I am 65 which is 25k per year for ten years adjusted for inflation of 3%.

To retire at 55 I would need an additional 364,206.08 to pay myself 25k per year adjusted for yearly inflation at 3% until I start drawing down the private pension pot at age 65.

The final years from 75+ is literally "whatever there is left + whatever state pension exists".
 
If you manage to retire early, you could continue your reckonable Prsi up to age 66 (or 70) from an ARF.

You could get BP65 from age 65 to 66.
From age 66 your state pension could kick in.

You might manage to retire a few years before age 65.
 
S class said:
If you manage to retire early, you could continue your reckonable Prsi up to age 66 (or 70) from an ARF.

You could get BP65 from age 65 to 66.
From age 66 your state pension could kick in.

You might manage to retire a few years before age 65.
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"you could continue your reckonable Prsi up to age 66 (or 70) from an ARF."
Could you explain more about this please, I was not aware you can continue paying PRSI youself if you stop work early. Is it based on minimum wage calculation? how do you know how much to pay?
 
I think it's €1m per person....

Aim to retire about 63, earlier if you can afford to.
 
mary poppins said:
"you could continue your reckonable Prsi up to age 66 (or 70) from an ARF."
Could you explain more about this please, I was not aware you can continue paying PRSI youself if you stop work early. Is it based on minimum wage calculation? how do you know how much to pay?
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Yearly drawdowns from an ARF of a minimum of 5000 euro per year will get you 52 reckonable Prsi contributions per year up to the age you claim the state contributory pension. This Prsi is automatically deducted at source at a rate of 4%.

You can make voluntary Prsi contributions up to age 66. At present this costs 500 euro per year.

Provided you currently have a minimum of 520 full rate paid Prsi contributions, you could sign on for reckonable Prsi credited contributions up to age 66. These are free of charge.
 
cremeegg said:
Counting 'the final years' from 75+ seems a little young. If you are lucky 85+ might be more appropriate.
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It's one of those questions that can't be answered until after the event
I'm like the OP and would expect to get to 70 but checkout hopefully somewhere between 75 and 80
I don't know why but I feel life after 80 is something that I'd rather not experience, just a personal opinion

Mrs C's Godparents are still alive, still happily married to each other after 67 years, he's going to be 100 in a few weeks and she's going for 103
Still living at home but their life for all intents and purposes can be summed up as
"We're just two lost souls, swimming in a fish bowl year after year, running over the same old ground"
And that for me is not a life but they seem happy, probably due to the "medication" there on ;)
 
Cervelo said:
It's one of those questions that can't be answered until after the event
I'm like the OP and would expect to get to 70 but checkout hopefully somewhere between 75 and 80
I don't know why but I feel life after 80 is something that I'd rather not experience, just a personal opinion

Mrs C's Godparents are still alive, still happily married to each other after 67 years, he's going to be 100 in a few weeks and she's going for 103
Still living at home but their life for all intents and purposes can be summed up as
"We're just two lost souls, swimming in a fish bowl year after year, running over the same old ground"
And that for me is not a life but they seem happy, probably due to the "medication" there on ;)
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The way I look at it is: how many more years do I want to sacrifice now to potentially provide for a future self given long time frame and the uncertainity?

cremeegg said:
My father's view on this was, 'You think 85 is old until you are 84".
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Theres a lot of wisdom in that.

Dr Strangelove said:
€545k is nearly double €25k a year for ten years adjusted for 3% inflation even assuming no investment growth.
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Fair enough. I suck at maths. I used this website (https://www.forbes.com/advisor/investing/inflation-calculator/) to calcuate the inflation on 25k from 2024 to 2042. Repeated it for 2043, 2044 etc and added the lot together.
 
Senben19 said:
Man alive, this makes for depressing reading. Although i see your points re post 80 challenges. But god almighty, there must be positives to look fwd to.
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Sure. We'll likely have really cool suicide pods by then and Musks neurolink will mean we can drift along the internet while being feed intravenously with low carbon mush and monitored by Googles Better Carer AI bot. Your grand kids dont visit because they now identify as an cybernetic lifeform and you "organics" don't understand. The ever increasing property tax and health fees forced you to sell your property to the corporations back in 2040 but the new retirement pod at least comes with a comfy chair and a nice window where you can watch the food riots and listen to news from the latest war.
 
theObserver said:
Sure. We'll likely have really cool suicide pods by then and Musks neurolink will mean we can drift along the internet while being feed intravenously with low carbon mush and monitored by Googles Better Carer AI bot. Your grand kids dont visit because they now identify as an cybernetic lifeform and you "organics" don't understand. The ever increasing property tax and health fees forced you to sell your property to the corporations back in 2040 but the new retirement pod at least comes with a comfy chair and a nice window where you can watch the food riots and listen to news from the latest war.
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Your rent for the retirement pod is covered by a soilent green contract, saving the expense of the suicide pod.
 
theObserver said:
Fair enough. I suck at maths. I used this website (https://www.forbes.com/advisor/investing/inflation-calculator/) to calcuate the inflation on 25k from 2024 to 2042. Repeated it for 2043, 2044 etc and added the lot together.
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That makes perfect sense. I think your maths is good.

You first post is not crystal clear that you inflated 25k from today to the future retirement years. It can be read as you start at 25k in retirement and then inflate.
 
I’ve done a bit of work on it and our minimum target is €60k a year net of tax in today’s terms, with anything over and above that being ‘jam’.

The great unknown is stuff like nursing home or medical care, which can be €60-80k per person per annum in today’s terms.
 
Gordon Gekko said:
The great unknown is stuff like nursing home or medical care, which can be €60-80k per person per annum in today’s terms.
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I don't include nursing home costs when doing lifelong cashflows for a number of reasons:
  1. You may never live in a care home.
  2. You don't know how long you will be there (5 years would be the max for most).
  3. No point in not enjoying life in your 60's for something that may not happen until your 90's, if it happens at all.
  4. You cannot the risk away.
  5. Fair deal is a great provision. If you have the money to pay for care home, you pay. If you've spent all your money, the State will pay for the shortfall in what you can afford and the actual cost.
Steven
www.bluewaterfp.ie
 
...the people I see having the most active retirements are spending about €100,000 a year and they travel A LOT. Not staying in 5 star hotels all the time but will upgrade to business class if on a long haul. They use the annual gift exemption each year to help out their children and grandchildren financially. Most ran their own business as well as having substantial pension pots by the time they got to selling their businesses.
 
Steven Barrett said:
I don't include nursing home costs when doing lifelong cashflows for a number of reasons:
  1. You may never live in a care home.
  2. You don't know how long you will be there (5 years would be the max for most).
  3. No point in not enjoying life in your 60's for something that may not happen until your 90's, if it happens at all.
  4. You cannot the risk away.
  5. Fair deal is a great provision. If you have the money to pay for care home, you pay. If you've spent all your money, the State will pay for the shortfall in what you can afford and the actual cost.
Steven
www.bluewaterfp.ie
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That’s interesting. Thanks Steven. Does anyone ever ask for it to be included? I don’t like the idea of having to sell my home or not having a choice around where to go.
 
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