64 year old - Retirement Planning

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Finance_Novice

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I am posting this on behalf of my father. My mother who died recently used to handle all financial matters so just trying to get some advise for him on here on what to do for his retirement planning.

Personal details

Age: 64
Spouse’s/Partner's age: N/A

Number and age of children: 3 adult children


Income and expenditure

Monthly take-home pay: ~1200

Type of employment: e.g. Civil Servant, self-employed: Self Employed

In general are you:
(a) spending more than you earn, or
(b) saving? Saving


Summary of Assets and Liabilities
Family home worth ~€250k with no mortgage
Cash: €300k (includes recent life cover payout for my mother)
Defined Contribution pension fund: €132k

No debt or loans

Other information which might be relevant

Paying €450 a month for critical illness and life cover

Paying €450 a month for VHI (includes cover for youngest daughter)


What specific question do you have or what issues are of concern to you?



My father has quite a large amount of cash following the recent life cover payout for my mother and a smaller defined contribution pension. We are looking to see how best to plan for his retirement and any suggestions on who he should talk to (e.g. broker, independent financial advisor etc).



We are also wondering if it is worth maintaining his critical illness and life cover policy as it is quite expensive at this stage. It is policy they originally took out when we were kids and they just kept it going over the years.
 
It would appear that the youngest adult daughter is some what dependant on the father.
Is she a student or does she have some other needs that might indicate she will be dependent long term?
 
Sorry for the death of your Mum. On an income of 1200 per month he cannot afford to pay health insurance for anyone else so he should stop that. He does not need the life insurance or critical illness cover either.

What are his other outgoings? Will he get a full contributory old age pension at 66?

Once you have a good idea of outgoings and income after retirement, and what his needs and requirements are then you can decide what to do with the €300 and €132K.

You could recommend maxing out his pension by making AVC contributions for 2022, 2023 & 2024. But will he get tax relief at 40% if that income is correct. Is he working a part time minimum wage job?
 
Apologies, his monthly take home pay is €2,400 (1200 is bi-weekly). I also forgot that he recently started getting the widowers pension of €225.50 per week. He will have a full contributory old age pension at 66.

The health insurance is little complicated. My sister had a serious illness that might return. Her income is low and she wouldn't be able to afford VHI so he covers it for her. We can look at the VHI premium though as it barely reduced once my mother was off the policy. This is not something he would consider dropping.

The critical illness and life cover was the one I thought might make sense to drop. Like I said, it was just something they previously had when we were kids and they just carried it on. Is there really any value to keeping at this stage?
 
Don't forget the widows pension is taxable. I'd ditch the unnecessary insurance; understand re VHI.
 
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