# Can we afford to retire



## coleen (5 Oct 2015)

my O H will be 60 shortly and is thinking about retiring . He has been in a public sector for 15 years.
He will get a lump sum of 25k and 3,700 annually. We have 2 rental property's 
Property 1 rent is 5,000 k a year 
Property 2 rent is 12k a year both property's are mortgage free.
He also has a pension lump sum from a previous employment of 16k
We have cash savings of 130k on deposit not making much really
We own our home no other debts and both drive cars that are fully paid for 10 yrs old
Our children are all living abroad and working.
I am still working and will continue to do so for possibly 5 more years.
I am 53 and have only started to pay into a small pension for myself. 
I earn 35k gross and I pay 8k into an Irish Life product it has 25 k in it so far .
I would like to retire at 58 and hope to have added about 50k to my Irish life pension to give me some money until I reach the age for state pension.
We will both qualify for the state pension.
We feel we could live well on 26 k per year.
We would like to pursue other interests and do not want to wait until we are too old.
In relation to our rental income property 1 is new and very rentable but property 2 is a small retail unit in a rural town that has lots of vacant shops and while we have had the same tenant for 14 years they could look else where when the lease is up in January 2017
It has a value of around 100k if you could sell it.
my main question is are we well set up to retire ??
Is there any thing we should put in place now


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## Bronte (6 Oct 2015)

*Income at 60 and you 53*

3700
5000 - how much is this really into your hand?  look at last years tax return
12K - ditto
Plus your current income for another five years, getting him to 65 (state pension as far as I know starts at 66), what is this actual net income


*Income at 65/67 and you 58 *

3700
5000 - how much is this really into your hand?  look at last years tax return
12K - ditto
His state pension ?
Your Irish life pension will pay out at 58? How much anually
What are you entitled to at 66 in relation to state pension


1. Be careful with the year 65 as state pension age is 66 as far as I know
2. Check with Social welfare pensions both your situations and entitlements to find out if you need to do something to get the full state pension each, might need more prsi contributions
3. Not sure, but if you finish work early are you entitled to contributory dole each for a while - need to check
4. Will need money for two cars at some stage (or maybe only one if no jobs)
5. Rental property 2 is a worry, that's a great income
6. Is your home worth much.  Is it too big.  Do you need a smalish bungalow going forward
7. Where are you getting the figure of 26K to live on.  How much do you both spend annually now ? 
8. Will you be bored to tears in retirement.  I find 26 K not a lot ! But I guess it depends on what kinds of things you are planning on doing. 

*Health Insurance*

Have you got a good policy, very important in old age


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## coleen (6 Oct 2015)

Thank you for your reply. I feel we would be ok for the next 5 years while I am working as we could live on one wage now.
the two rental properties are currently taxed at high rate but if Husband retired then we would be out of the high bracket.
Is there an interim payment between 65 & 66 equal to pension amount ?
We would both be entitled to state pensions but I am aware that they may not be paid at current levels
My Irish life pension will only pay at 60 but was considering using some of our savings in these two years 
Property no 2 is of concern but it is up for renewal early 2017 and has been rented to the same organisation for 14 years.
We wont know until then if they will take it again. If they do then I would consider we would be ok.
I am basing the figure on our current spend with a cut on things like sky tv/sports.
If I wait until I get state pension to retire  which will be 68 I think, my husband will be then  75 and I feel if you had plans to do things better sooner than later !
I don't think we will be bored, we walk cycle read golf and are involved in other things.
While our house is a bit bigger than we need I am not sure that we would look at selling this.
I would like to try and live on the 26k amount for the next 2 years and see how we get on and then this would help me decide.
I will have to give this more thought.


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## benny fitt (25 Jan 2016)

You should check if your Husband is entitled to an integrated pension form his public service.A pre 1995 civil servant can retire at 60
with part of the OAP in their pension. A post 95 civil servant has the same right to a portion of the OAP until 66 provided there is no entitlement to soc welfare benefit.


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## Gerry Canning (17 Feb 2016)

Coleen,
In Uk surveys it was found that if a couple had £24,000 ie circa euro 30,000 per annum that they would be happy nuff.
Looks like you are close to that .
Maybe wait until renewal of Property no 2 ie one year before really deciding.
" So good luck.


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