Many thanks again to everyone for all your great advice.
I have summarised all the advice that I received below – as a summary for myself but also as in case that it might benefit anyone else that reads this thread.
Summary:
I have summarised all the advice that I received below – as a summary for myself but also as in case that it might benefit anyone else that reads this thread.
Summary:
- The primary issue is that I am a bit fed up with my job, not that I yearn to retire. Maybe the best solution is to change job, rather than rush into early retirement prematurely, just because my finances allow it.
- If I do decide to pursue the retirement option, it does not have to be all or nothing. I could consider a reduced working week (which would line up with my wife’s current situation), taking a sabbatical, or quitting for just a year or two etc.
- Whenever I do retire, understanding how much income you need to live is critical. I need to do a detailed exercise to estimate this which should not only include day-to-day expenses but also periodic expenditure like home repairs, new car, medical expenses, holidays, gifts etc. I also need to look at items that are currently paid for by my employer when working this out (e.g. health insurance, mobile phone, laptop, travel expenses etc)
- This financial exercise to compare estimated spending and pension values etc needs to look at myself and my wife jointly.
- We also need to jointly plan what we will do when retired. How will we fill our time in a way that we are contented? Ideally, we will both retire around the same time.
- We will need to learn to slow down, chill out and take life as it comes when we retire. Retirement lifestyle is different to that of a working professional – we will need to learn to adjust.
- I need to be smart about the way that I retire my PRSA and RAC. Retiring the PRSA early (possible from age 50) is a way to generate some income via an ARF which would keep up PRSI contributions if I do stop working. Also, to delay retiring the RAC (possible from age 60) would leave it invested for longer without the burden of imputed distributions.
- I will probably not be entitled to the full Irish State Pension as I cannot contribute to PRSI after age 66 but I should keep an eye on this in case it changes.