# Is there a plan for those who retire without owning a home?



## phileasfogg (9 Oct 2016)

Is there a long term plan for housing those who retire without a home. Where previously most working in good jobs will have owned a home, will there be rent relief etc on top of the higher pension costs. My forecasted pension will just about cover rent on a modest home for example.


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## Brendan Burgess (10 Oct 2016)

That is why I suggest the people's PRSI should go into a fund which would pay for their unemployment benefits and retirement. 

People should aim to be become self-sufficient and not be dependent on the state. 

At least you realise that you are not saving enough to be able to provide for yourself in retirement. You have a choice. Save more now or throw yourself on the mercy of the taxpayer. 

Brendan


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## odyssey06 (10 Oct 2016)

There is no long term plan... today's suite of politicians and civil servants are pushing for people to rent, away from home ownership, their level of concern for retirees in this situation is at the same level as "let them eat cake".


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## Purple (10 Oct 2016)

In answer to a question about whether a plan exists for any long term problem or issue faced by the state the answer is No.
The only people who attempted to address any long term issue were the Greens on environmental issues.


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## phileasfogg (10 Oct 2016)

I'm a public sector worker, the majority of my income is not pensionable even though i pay pension levies on all my income.  Again the priority on my take home pay is childcare, tax on first property, rent on property i live in, try and save for a mortgage.  There is nothing really left for extra pension contributions.  I read here previously that saving for a mortgage should take priority over pension contributions, but i'm not sure if this holds through if you are in your 40's?  Also college costs  will be entering the equation in the next few years.  Would ideally like a home before then.  I pay ~ 1,700 a month in tax (tax on first home, prd, usc, tax, prsi) (my take home pay is ~2,400).  I'm still unsure if pension or a home should take priority.  I don't feel comfortable leaving my chance of a roof over my head to chance


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## Purple (10 Oct 2016)

You have a property you are paying tax on, you live in a rented home and you are saving for a mortgage. That's a bit strange.
You are a public sector employee but your income is not pensionable. That also sounds strange. 
Can you clarify please?


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## phileasfogg (11 Oct 2016)

I bought an apartment (first step on so called property ladder).  I no longer work near where the apartment is.  The apartment is also too small for a family.  I cannot afford to sell it because it has a bout 100,000 negative equity still.  So, i rent it out.  The rent does not pay the mortgage.  I pay tax on the rental income.  I now live in a different house nearer to where i now work.  It is big enough for a family but I have to pay rent to live there.  I would love to own a home big enough for my family and near to where i work and to the schools my children go to.  In order to do this, I would need a mortgage to purchase such a home.  Very strange indeed.
I work in a hospital and am required to be available for work on rotas that cover 24/7/ 365 days a year.  I get paid for this work, but any work outside of 9-5 is not reckonable for pension.  I do have to pay the pension levy on this pay however, whether or not it is pensionable.  The governement added this "tax" to all public sector workers who work out-of-hours and called it a "pension levy" to make it more palatable.


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## Purple (11 Oct 2016)

phileasfogg said:


> I bought an apartment (first step on so called property ladder).  I no longer work near where the apartment is.  The apartment is also too small for a family.  I cannot afford to sell it because it has a bout 100,000 negative equity still.  So, i rent it out.  The rent does not pay the mortgage.  I pay tax on the rental income.  I now live in a different house nearer to where i now work.  It is big enough for a family but I have to pay rent to live there.  I would love to own a home big enough for my family and near to where i work and to the schools my children go to.  In order to do this, I would need a mortgage to purchase such a home.  Very strange indeed.


So you earn just under €50'000 a year and pay €20'400 in tax. That's remarkable.



phileasfogg said:


> I work in a hospital and am required to be available for work on rotas that cover 24/7/ 365 days a year.  I get paid for this work, but any work outside of 9-5 is not reckonable for pension.  I do have to pay the pension levy on this pay however, whether or not it is pensionable.  The governement added this "tax" to all public sector workers who work out-of-hours and called it a "pension levy" to make it more palatable.


 You can console yourself with the fact that even with the pension levy (which is a tax) you still come nowhere near to funding your defined benefit pension. They should have just made it a pay cut so that those receiving a public sector pension were hit as well. That way the burden could have been spread and those with no mortgage, no childcare costs, no commuting costs and higher tax credits could have contributed.


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## Gordon Gekko (11 Oct 2016)

Purple said:


> So you earn just under €50'000 a year and pay €20'400 in tax. That's remarkable.
> 
> You can console yourself with the fact that even with the pension levy (which is a tax) you still come nowhere near to funding your defined benefit pension. They should have just made it a pay cut so that those receiving a public sector pension were hit as well. That way the burden could have been spread and those with no mortgage, no childcare costs, no commuting costs and higher tax credits could have contributed.



He/she should also be mindful of the fact that his/her employer became insolvent. In the private sector, that would have meant redundancy. In the public sector, it meant an effective pay-cut. Hardly a Stalinesque purge.


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## phileasfogg (11 Oct 2016)

It's not a stalinesque purge, I'm aware of that. but I am more than finding my pension. I would get €800/ month from the government if I never paid a pension contribution. As it is with 40 years contributions I will receive an extra €200/ month. If I saved my money instead of paying pension I would be measurably better off


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## Steven Barrett (11 Oct 2016)

Back to the OP, you can go on the council waiting list. The fact that you have an investment property means you probably won't get too far. Remember, by the time you have retired, your kids should have moved out of home, so the apartment will be appropriate to live in. Most of us would like a bigger house. I can't see why the State would need to provide it for us? 


Steven
www.bluewaterfp.ie


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## phileasfogg (11 Oct 2016)

I don't believe the state should provide homes but the fact will remain that for a certain generation, they will neither afford to buy a home or afford to rent upon retirement. I do not count myself in this cohort. Hopefully I will be able to sell apartment one day and own a suitable home where I now live.


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## Purple (11 Oct 2016)

phileasfogg said:


> I don't believe the state should provide homes but the fact will remain that for a certain generation, they will neither afford to buy a home or afford to rent upon retirement. I do not count myself in this cohort. Hopefully I will be able to sell apartment one day and own a suitable home where I now live.


You do seem to be paying a very high amount of tax.


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## phileasfogg (11 Oct 2016)

A lot of my tax is on first home. The rental income is taxed. It just doesn't get in my pocket ( I'm gambling that it will pay off long term)


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## phileasfogg (11 Oct 2016)

Any work I do at weekends for example is taxed at 58% ( public sector tax rates)


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## Purple (11 Oct 2016)

phileasfogg said:


> Any work I do at weekends for example is taxed at 58% ( public sector tax rates)


Yep, marginal tax rates are extremely high in this country.


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