# Retire in 10 years 3.5k per month possible?



## sinbad75 (10 Mar 2019)

*Age:*
43
*Spouse’s/Partner's age:*
45

*Annual gross income from employment or profession:*
E64,000
*Annual gross income spouse:*
E80,000

*Type of employment:*
Both private sector employees

*Expenditure pattern:*
We are both generally 'savers'

*Rough estimate of value of home*
E400,00
*Mortgage on home*
0


*Other borrowings – car loans/personal loans etc*
None

*Do you pay off your full credit card balance each month?*
Yes

*Savings and investments:*
E300,000. After pension contributions saving 2k pm.

*Do you have a pension scheme?*
1. 275K, between avc and employer contributions 32k currently added per year.
2. 169K, 20K added per year


*Do you own any investment or other property?*
No.

*Ages of children:*
9, 12

*Life insurance:*
Yes.

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

We would like to retire in 10 years. With our current pensions and savings is this possible? The kids will most likely go to college, but may live at home.

Thanks


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## Brendan Burgess (10 Mar 2019)

It's not a very meaningful question. 

And therefore, there really isn't a very meaningful answer. 

And however people answer it, this would not affect anything you do now. Your pensions and investment strategy will not be affected. 

Overall, I would not like to be a couple aged 55 with two children in college  and have "only" €800k + whatever you save in the meantime - say €1m.  I am sure you could eke out a living. 

The €1mwill have to be invested in the stock market and it could halve the day after you retire. 

You might well live into your 90s. You might get sick.  You might like to help your kids get on the housing ladder. 

Way too many uncertainties for €1m to be comfortable. 

Come back in 10 years time and review the situation. 

Brendan


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## RETIRED2017 (10 Mar 2019)

Are you maxing out all of  your pension tax  break for your age,


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## elacsaplau (10 Mar 2019)

Hi Sinbad75,

Firstly, well done - you are in good financial shape.

Based on your assets and future contributions, it is definitely possible for you to retire in 10 years.

It is even probable that your assets will be sufficient to support your desired income (in real terms) for the remainder of your life, if appropriately invested. By this I mean not taking excessive or insufficient investment risk.

Of course, it's not certain, though, because stuff can happen between now and retirement or in retirement. Then again, what is certain in life?

All things being equal your retirement financial readiness would be stronger at, say, 58 compared with 53. The question is whether such extra years would be too high an opportunity cost - for example, what would happen if one or both of yee was to pass on at 55, 60, 65, etc.? Some people really like their work, others don't, etc.

In summary, it is a workable goal that you probably need to fine tune. There are loads of moving parts!


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## Aph2016 (10 Mar 2019)

Don't mean to sound smart but why are people looking to retire at the age of 53/55? I know plenty of people around the 60-65 mark and they are dreading retirement, working gives you a purpose and a reason to get out of bed every day.


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## RETIRED2017 (10 Mar 2019)

elacsaplau said:


> Hi Sinbad75,
> 
> Firstly, well done - you are in good financial shape.
> 
> ...



The government aim is to increase the lower tax rate to 50K over the next few years, they should be maxing out there tax break while still given @40%

 early retirement possibly means more pension income  taken at lower tax rate,


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## noproblem (10 Mar 2019)

Aph2016 said:


> Don't mean to sound smart but why are people looking to retire at the age of 53/55? I know plenty of people around the 60-65 mark and they are dreading retirement, working gives you a purpose and a reason to get out of bed every day.



No doubt there are some people you write about, but I can assure you there are many and I mean many who think retirement is fantastic. It might take a bit of getting used to but one can learn how to turn over and have another hour in "the leaba" with the wind blowing outside and the rain hitting off the windows and roof, you can arrange a game of golf any day of the week you want, have a very leisurely lunch with the other half or some friend or other, jump on the train for free and head off to the city for a day, get around on the bus and see the sights at your leisure and won't cost you a thing. There's plenty of discounted goodies for the 'ould wans too, head off on a holiday at quiet times and good prices, I love reading and it's great to take up a good book and not be rushed to do anything but stay reading it. Then there's the advantage we can take of others who think we have to be careful and they do things for us FOR FREE. I'LL JUST LEAVE IT THERE AND WON'T MENTION ALL THE THINGS WE ALWAYS WANTED TO DO BUT COULDN'T. You know yourself, so ta ra love and hope I see you rushing about somewhere tomorrow, i'll be listening to the rain for a while in the morning and a late fry up I think


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## RETIRED2017 (10 Mar 2019)

noproblem said:


> No doubt there are some people you write about, but I can assure you there are many and I mean many who think retirement is fantastic. It might take a bit of getting used to but one can learn how to turn over and have another hour in "the leaba" with the wind blowing outside and the rain hitting off the windows and roof, you can arrange a game of golf any day of the week you want, have a very leisurely lunch with the other half or some friend or other, jump on the train for free and head off to the city for a day, get around on the bus and see the sights at your leisure and won't cost you a thing. There's plenty of discounted goodies for the 'ould wans too, head off on a holiday at quiet times and good prices, I love reading and it's great to take up a good book and not be rushed to do anything but stay reading it. Then there's the advantage we can take of others who think we have to be careful and they do things for us FOR FREE. I'LL JUST LEAVE IT THERE AND WON'T MENTION ALL THE THINGS WE ALWAYS WANTED TO DO BUT COULDN'T. You know yourself, so ta ra love and hope I see you rushing about somewhere tomorrow, i'll be listening to the rain for a while in the morning and a late fry up I think



If you don't Build your pension pot early in your working life, if any underlying medical conditions Disability developes, you may have to stay working longer than is good for your Health, just a thought,


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## noproblem (10 Mar 2019)

Glass half full or glass half empty type of person. People need to get a life, enjoy it, stop worrying about this that and the other all the time. When  the time comes to decompose for all of us, make sure you've spent it coz someone else will do it for you.


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## Sarenco (11 Mar 2019)

@sinbad75 

While none of us knows how long we will live, I think you should be thinking in terms of pre-funding 35 years' of expenses if retiring at 55.  Your desired spending is €42k pa, so you that gives you a "number" of €1.5million, in 2019 terms.

You currently have a paid for house and ~€750k in savings.  You are planning on saving €75k pa so you should reach your €1.5m number in 10 years.

I'm assuming that the return on your savings, net of all costs and taxes, will match inflation.  I'm also ignoring the State pension.

Lots can happen over the course of 10 years but it looks like a decent plan.


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## RETIRED2017 (11 Mar 2019)

noproblem said:


> Glass half full or glass half empty type of person. People need to get a life, enjoy it, stop worrying about this that and the other all the time. When  the time comes to decompose for all of us, make sure you've spent it coz someone else will do it for you.


I have seen people who neglected there own pensions, helping there children to get on the housing ladder ,
what a waste just increases house prices above that the should be for there children's income level, If they had looked after there own pension there example to there children would be worth more than the money given,

 When you leave/decompose nice to know you left left something behind they cannot spend ,which will last them there lifetime,


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## RETIRED2017 (11 Mar 2019)

Sarenco said:


> @sinbad75
> 
> While none of us knows how long we will live, I think you should be thinking in terms of pre-funding 35 years' of expenses if retiring at 55.  Your desired spending is €42k pa, so you that gives you a "number" of €1.5million, in 2019 terms.
> 
> ...


How much net Income will they have to live on after saving 75K ,just like to see how you came up with the figures,


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## Sarenco (11 Mar 2019)

RETIRED2017 said:


> How much net Income will they have to live on after saving 75K ,just like to see how you came up with the figures,


They are hoping to spend €42k pa - €42kx35= ~€1.5m.  

I've assumed that the return on their savings, net of costs and taxes, will keep up with inflation.


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## RETIRED2017 (11 Mar 2019)

sinbad75 said:


> *Age:*
> 43
> *Spouse’s/Partner's age:*
> 45
> ...


HI
You have not given a breakdown of the % of income employer is paying into both pensions pots ,your contribution and AVC amounts,
With the kind of savings you have you need to be maxing them out,
if I was planning to retire at the age you plan to, I cannot see where I will get a better return on savings even AVCs  at 20% tax break,


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## Jim2007 (11 Mar 2019)

Aph2016 said:


> Don't mean to sound smart but why are people looking to retire at the age of 53/55? I know plenty of people around the 60-65 mark and they are dreading retirement, working gives you a purpose and a reason to get out of bed every day.



You only sound smart to those who live to work.  Why would you want to work past say 55 when there are so many other things you could be doing?  Spending time with family and friends, travel, hobbies, education etc.

You also seem to equate work only with earning a living.  That is not the case.  We still work on projects that interest us, things that will benefit our community or charity.  And we have a lot of fun doing it because we don’t have to worry about making it pay - it does not matter if we have project over runs the client will still be billed the same about - zero!


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## MangoJoe (11 Mar 2019)

Aph2016 said:


> Don't mean to sound smart but why are people looking to retire at the age of 53/55? I know plenty of people around the 60-65 mark and they are dreading retirement, working gives you a purpose and a reason to get out of bed every day.



Why would anyone with their own thoughts, motivations, inclinations and imagination ever need a profession or employer to give them direction, focus or validation in life?

How empty, ambitionless, uninspired, myopic and confined must ones outlook on the breadth, scope and incredible expanses of this great World be for them to not seek anything further than the well-worn path between their front door and their place of work?

Like the saying goes, you either work to live or live to work. Personally if I had the funds I would retire instantly and then set about accumulating the rest of lifes great riches and perhaps aim to try and enrich the lives of others where possible.

I may have read it on here a while back, but isn't there a quote along the lines of nobody lying on their deathbed and lamenting that they didn't put more hours into their job?

Sorry to be off-topic OP - Congrats on your enviable financial status and best of luck !!!


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## sinbad75 (11 Mar 2019)

Thank you for all your replies, to keep the peace...I’ll probably work part time after 55.

Pension contributions, my employer pays 10%, I pay 5%, and then a further 20% as an AVC. So that’s 25% from me which I think is the limit? 1840pm in total

Spouse pays 25% avc, employer 15%. 2665pm in total - again I think at the limit.


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