Personal details
Age: 59
Spouse’s/Partner's age: 61
Number and age of children: 2 children. One is independent and the youngest is living at home, 1 more year in college and works part time. So really funds themselves.
Income and expenditure
Annual gross income from employment or profession: 17000 (part time). I will work until 65 all being well.
Annual gross income of spouse: 75000
Monthly take-home pay 1100 and 3500 (pension contributions paid and car bik paid before spouse take home pay)
Type of employment: e.g. Civil Servant, self-employed - Private Sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving
Summary of Assets and Liabilities
Family home worth €850k with a €0 mortgage
Cash of €100,300 Bank of Ireland recently transferred from KBC (need to do something with this) (Joint Account)
Cash of 25000 in AIB savings account (emergency fund and also holidays etc, try to keep balance at 25000) (Joint Account) I put my salary into this account.
Investment Bond (Single Premium) - Current surrender value €186000 (Joint names)
With Profit Investment Bond - continued on saving the SSIA. Save €500 per month - current surrender value €126000. This is in my name only, we just never got around to changing it to joint life. Should we?
Spouse - Defined Contribution pension fund: Current PRSA €468k + 20000 paid up personal pension plan + STG 50000 in an old paid up UK pension scheme. (We have tried to max the contribution allowed on the PRSA over the past few years)
Spouse will also be eligible for UK old age pension after following advice received here on seeking eligibility re backdating contributions. They will also be eligible for whatever ROI social welfare pension there is at the time.
Me - Defined benefit pension from old employment. Pension starts at 60. Annuity will pay approx 37000 pa with 66% payable to spouse if I die before them. Also an option to take a TV before retirement at 60. It was 800,000 but I believe this will have reduced significantly from reading topics here due to annuities being cheaper to provide. I have not received an updated pension benefit statement as yet.
DB pension from Company will reduce by the value of the social welfare pension once I get to old age pension age. I will qualify for full SW pension at that time.
I have also put in a request to see if I am eligible to pay anything to a UK pension as I worked there for just shy of 3 years. That may or may not be a runner.
Also small DC pension with current employer. i contribute around €70 pm, employer €100 pm. I haven't increased this as I really don't know if it is worth it or not. I only joined the scheme around 2 years ago so projected fund is very small.
Company shares : €20,000k
They yield dividends of around €2000 pa gross. I bought some when I was employed by the Company so as far as I am aware, I could sell that element tax free but I really don't know how to go about looking into doing that.
Buy to Let Property worth Stg 80000k . No mortgage. Bought years ago at a reduced housing executive price. Increase in value about STG 70,000 since we bought it so tax of some kind or other will be payable on that increase when we decide to sell it.
Family home mortgage information - N/A
Lender
Interest rate
If fixed, what is the term remaining of the fixed rate?
We may downsize in time, just don't feel the need to yet.
(No need to tell us the monthly repayments or what term is left)
Other borrowings – car loans/personal loans etc - NONE
Do you pay off your full credit card balance each month? YES
If not, what is the balance on your credit card?
Buy to let properties
Value: STG 80000
Rental income per year: STG 6000
Rough annual expenses other than mortgage interest : STG 1000 (Rates and letting agent fees) Tax paid circa 2500 pa
Lender
Interest rate
If fixed, what is the term remaining of the fixed rate?
I'm not sure how this would be dealt with in the event of both of us dying. Should we have a UK will in place or can we deal with it in our ROI will?
Other savings and investments:
Do you have a pension scheme? Yes
Do you own any investment or other property? Yes as above.
Other information which might be relevant
Life insurance: minimal
250000 on spouse to expire at age 65. Other life assurance expired. Death in service for myself. Salary x 3
What specific question do you have or what issues are of concern to you
My husband would like to retire from his job in the next year or so. He may retire fully or reduce to a couple of days if possible.
My DB pension will start next year and I feel that if we go for the annuity rather than a TV we will at least have a definite amount coming in every month and we can supplement this with money from our investments and part time work as and when we need it. My spouse feels that it might be best to take the TV and invest it. I get that, because it is hard to bypass a large sum of money and I know you are taking a chance and hoping not to die before you get value from the annuity but I would really like a bit of certainty and stability at this stage of our lives and for us not to have all our eggs in the one basket.
My fear for retirement is money spent not being replenished by salary. And what if we run out! I know I have to get over that but it is there. I think that is why the annuity appeals.
Like lots of investors, my spouses pension pot has decreased in value over the last year or so, so I feel the longer we can leave that without touching it, the better. It will give the fund a chance to grow. I do realise funds can go down as well as up but if we don't need the money now, I think we should leave it alone. My understanding is that as long as we take the tax free and set up an ARF by the time my spouse is 70, that should be ok.
With the DB scheme (not taking the tax free amount, which we probably will take and live off that for a couple of years), we should have a gross income of approx €55000 pa (DB and my part time work) along with supplements from savings, I think we would be ok.
I have asked questions on pensions before, but it is all getting so close now, I thought I would ask again peoples opinion on our current situation and what you consider might be the best thing to do. I don't think the figures will change much over the next year or so.
Such a relief to get that out of my head and in writing...
Thanks for taking the time to read this.
Age: 59
Spouse’s/Partner's age: 61
Number and age of children: 2 children. One is independent and the youngest is living at home, 1 more year in college and works part time. So really funds themselves.
Income and expenditure
Annual gross income from employment or profession: 17000 (part time). I will work until 65 all being well.
Annual gross income of spouse: 75000
Monthly take-home pay 1100 and 3500 (pension contributions paid and car bik paid before spouse take home pay)
Type of employment: e.g. Civil Servant, self-employed - Private Sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving
Summary of Assets and Liabilities
Family home worth €850k with a €0 mortgage
Cash of €100,300 Bank of Ireland recently transferred from KBC (need to do something with this) (Joint Account)
Cash of 25000 in AIB savings account (emergency fund and also holidays etc, try to keep balance at 25000) (Joint Account) I put my salary into this account.
Investment Bond (Single Premium) - Current surrender value €186000 (Joint names)
With Profit Investment Bond - continued on saving the SSIA. Save €500 per month - current surrender value €126000. This is in my name only, we just never got around to changing it to joint life. Should we?
Spouse - Defined Contribution pension fund: Current PRSA €468k + 20000 paid up personal pension plan + STG 50000 in an old paid up UK pension scheme. (We have tried to max the contribution allowed on the PRSA over the past few years)
Spouse will also be eligible for UK old age pension after following advice received here on seeking eligibility re backdating contributions. They will also be eligible for whatever ROI social welfare pension there is at the time.
Me - Defined benefit pension from old employment. Pension starts at 60. Annuity will pay approx 37000 pa with 66% payable to spouse if I die before them. Also an option to take a TV before retirement at 60. It was 800,000 but I believe this will have reduced significantly from reading topics here due to annuities being cheaper to provide. I have not received an updated pension benefit statement as yet.
DB pension from Company will reduce by the value of the social welfare pension once I get to old age pension age. I will qualify for full SW pension at that time.
I have also put in a request to see if I am eligible to pay anything to a UK pension as I worked there for just shy of 3 years. That may or may not be a runner.
Also small DC pension with current employer. i contribute around €70 pm, employer €100 pm. I haven't increased this as I really don't know if it is worth it or not. I only joined the scheme around 2 years ago so projected fund is very small.
Company shares : €20,000k
They yield dividends of around €2000 pa gross. I bought some when I was employed by the Company so as far as I am aware, I could sell that element tax free but I really don't know how to go about looking into doing that.
Buy to Let Property worth Stg 80000k . No mortgage. Bought years ago at a reduced housing executive price. Increase in value about STG 70,000 since we bought it so tax of some kind or other will be payable on that increase when we decide to sell it.
Family home mortgage information - N/A
Lender
Interest rate
If fixed, what is the term remaining of the fixed rate?
We may downsize in time, just don't feel the need to yet.
(No need to tell us the monthly repayments or what term is left)
Other borrowings – car loans/personal loans etc - NONE
Do you pay off your full credit card balance each month? YES
If not, what is the balance on your credit card?
Buy to let properties
Value: STG 80000
Rental income per year: STG 6000
Rough annual expenses other than mortgage interest : STG 1000 (Rates and letting agent fees) Tax paid circa 2500 pa
Lender
Interest rate
If fixed, what is the term remaining of the fixed rate?
I'm not sure how this would be dealt with in the event of both of us dying. Should we have a UK will in place or can we deal with it in our ROI will?
Other savings and investments:
Do you have a pension scheme? Yes
Do you own any investment or other property? Yes as above.
Other information which might be relevant
Life insurance: minimal
250000 on spouse to expire at age 65. Other life assurance expired. Death in service for myself. Salary x 3
What specific question do you have or what issues are of concern to you
My husband would like to retire from his job in the next year or so. He may retire fully or reduce to a couple of days if possible.
My DB pension will start next year and I feel that if we go for the annuity rather than a TV we will at least have a definite amount coming in every month and we can supplement this with money from our investments and part time work as and when we need it. My spouse feels that it might be best to take the TV and invest it. I get that, because it is hard to bypass a large sum of money and I know you are taking a chance and hoping not to die before you get value from the annuity but I would really like a bit of certainty and stability at this stage of our lives and for us not to have all our eggs in the one basket.
My fear for retirement is money spent not being replenished by salary. And what if we run out! I know I have to get over that but it is there. I think that is why the annuity appeals.
Like lots of investors, my spouses pension pot has decreased in value over the last year or so, so I feel the longer we can leave that without touching it, the better. It will give the fund a chance to grow. I do realise funds can go down as well as up but if we don't need the money now, I think we should leave it alone. My understanding is that as long as we take the tax free and set up an ARF by the time my spouse is 70, that should be ok.
With the DB scheme (not taking the tax free amount, which we probably will take and live off that for a couple of years), we should have a gross income of approx €55000 pa (DB and my part time work) along with supplements from savings, I think we would be ok.
I have asked questions on pensions before, but it is all getting so close now, I thought I would ask again peoples opinion on our current situation and what you consider might be the best thing to do. I don't think the figures will change much over the next year or so.
Such a relief to get that out of my head and in writing...
Thanks for taking the time to read this.