# wanting to retire at 53



## gunners (22 Feb 2020)

*Age*: 49
*Spouse’s/Partner's ag*e: 49
*Annual gross income from employment or profession*: 90000
*Annual gross income of spouse*: 53000
*Monthly take-home pay*: 5000
*Type of employment*: PAYE Employee
Spouse:Nurse

*In general are you*: Saving - approx €3000 per month

*Rough estimate of value of home*: €400000
*Amount outstanding on your mortgage*: 0
*What interest rate are you paying?* na

*Do you pay off your full credit card balance each month?* Yes
*If not, what is the balance on your credit card?* N/A

*Savings and investments:*
Approx €500000 - cash, in various deposit a/c and govt savings bonds/things.300000 euros in direct shares

*Do you have a pension scheme?* Yes - 4%, employer contrib is 8%. Have been adding AVC ( max) for past few years. 70000 euros in pot

*Do you own any investment or other property? yes
Getting 800 a week gross
No mortgage on property

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

*Ages of children: *N/A

*Life insurance:* Yes

My question is do you think we could both afford to retire at 53 as spouse will get a 18000 euro a year pension and 70000 euro avc fund.


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## jpd (22 Feb 2020)

The answer to your question depends on a number of factors

What sort of lifestyle do you have/want - travel, 5 star hotels,....

You would need to work out how much you need to spend each year and then put that against how much you will earn

Returns on cash, etc are basically zero, returns on shares can be around 2-3% dividends depending on the shares portfolio, return on investment property - who knows but you can probably work out the return on your current property

Income from pensions - you can get forecasts but that's all they are


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## moneymakeover (22 Feb 2020)

I think the answer is yes

Clearly though you were not prioritising your pension and yet you're asking about retirement?

The 800 per week in rental income gives you an indefinite income

If there no other income then income tax would be minimal


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## RedOnion (22 Feb 2020)

moneymakeover said:


> Clearly though you were not prioritising your pension and yet you're asking about retirement?


Really? What can they do apart from maximising AVC??


gunners said:


> Have been adding AVC ( max)





moneymakeover said:


> If there no other income then income tax would be minimal


They'll clearly have pension income.


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## moneymakeover (22 Feb 2020)

Only for the past three years = 70k
While having savings of 500k


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## RedOnion (22 Feb 2020)

Yes, you can 'afford' to retire, but as @jpd says it all depends on the lifestyle you want. Do you have plans for what to do with your time in retirement? You'll both be relatively young, so might take up very expensive hobbies. Have you thought about massively cutting down on hours rather than fully retiring?

You need to make sure you meet the requirements for a full state pension (in 20 years time).

Current assets outside pension (excluding mortgage free PPR).
Cash: 500k
Equities: 300k (assuming this is value after tax?)
Investment property: 120k (or more)
Adding 3k per month - another 140k by 53.

So you will comfortably have 1m in assets, excluding the property. If you make enough return just to cover inflation, you could draw down 25k per annum from your assets for 40 years before you run out.

Plus the rental income.

Within pension:
You, currently 70k pot. Max AVC + employer means you're adding over 30k per annum? So you'll have 200k by 53. It won't get you much of a pension if you access at 53, maybe about 6k per annum.

Spouse has 18k per annum pension.

So without state pension, over 33k per annum available without touching the cash & equities.

Edit: edited value of investment property, and summary based on rental income being monthly.


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## moneymakeover (22 Feb 2020)

RedOnion said:


> Yes, you can 'afford' to retire
> 
> Current assets outside pension (excluding mortgage free PPR).
> Cash: 500k
> ...


I think it's 500k total

And that's what i already said about the pension??


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## RedOnion (22 Feb 2020)

moneymakeover said:


> And that's what i already said about the pension??





moneymakeover said:


> Clearly though you were not prioritising your pension and yet you're asking about retirement?



You're absolutely correct. It's almost like I copied & pasted your post.
Sorry, I originally missed where you said how much will be in pension at 53, and what it'd be worth. I'd hate to just repeat your great wisdom and try take credit for it.


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## RedOnion (22 Feb 2020)

gunners said:


> *Savings and investments:*
> Approx €500000 - cash, in various deposit a/c and govt savings bonds/things.300000 euros in direct shares


Do you have 500k cash, or does the 500k include the shares?


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## gunners (22 Feb 2020)

I have 500k in cash and 300k in shares


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## RedOnion (22 Feb 2020)

gunners said:


> I have 500k in cash and 300k in shares


So you'll have 40k rental income, spouse 18k pension, and you maybe c.6k pension (assuming you continue max contribution).
Plus state pension from your late 60's.
Plus 1m cash/equities to fall back on as a safety net?


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## gunners (22 Feb 2020)

sorry rental is 800 a month


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## RedOnion (22 Feb 2020)

gunners said:


> sorry rental is 800 a month


You've just reduced your income by 30k per year. It's still possible, but you need to work out how much you'll need each year to live on. Assuming you use your cash / investment to live off (i.e you're not wanting to have anything left over when you both die), you've 25k per year to supplement pensions (assuming you plan for 40 years).

You need to see if you are both maximising pension contributions. Spouse will need to check details of their pension to see if they've any scope to make AVCs, either to maximise tax free lump sum or increase pension. You're currently higher rate tax payers, but will be lower rate once you retire (at projected levels).


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## Sarenco (22 Feb 2020)

Would your spouse be entitled to a pension of €18K pa from 53?  

Or €18k pa from his/her normal retirement age?


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## Protocol (22 Feb 2020)

A typical HSE nurse can't retire and get a pension at 53.


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## Early Riser (23 Feb 2020)

Protocol said:


> A typical HSE nurse can't retire and get a pension at 53.


 
A pre-2004 entrant with a normal retirement age of 60 could take CNER at 53. It would have a substantial actuarial reduction though.


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