7 year Semi Retirement plan

Sure, all feedback is interesting.

As follows with the Uni costs being the only estimate, everything else is actual (as at today)

Monthly - €4665 (€56k) - €5290 (€64k) depending on 1 or 2 at Uni the same time
1700 - household expenditure (food/petrol/school exp/clothing etc)
1090 - mortgage
1000 - living fund
250 - utilities (gas/electric/phones)
625 per child at Uni
--------

50
 
If you retire at 50 and your gross income is less than 50k you wont have to pay college fees. When you have more than one child at college the income levels increase by roughly 4k for each of them.
 
Cavanbhoy said:
If you retire at 50 and your gross income is less than 50k you wont have to pay college fees. When you have more than one child at college the income levels increase by roughly 4k for each of them.
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This is has been something bubbling in the back of my mind, that if I have enough pension funding and savings, it seems SUSI grant eligibility is based on income so would hope my kids would have fees covered. Looking at the current application it doesn;t seem to ask for savings?
 
Ndiddy said:
This is has been something bubbling in the back of my mind, that if I have enough pension funding and savings, it seems SUSI grant eligibility is based on income so would hope my kids would have fees covered. Looking at the current application it doesn;t seem to ask for savings?
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my recollection from a year ago is that it was very throrough on savings with lots of detail eg on state savings and more sophisticated allowing for actual income on savings than social welfare means testing treatment of capital.
 
mtk said:
my recollection from a year ago is that it was very throrough on savings with lots of detail eg on state savings and more sophisticated allowing for actual income on savings than social welfare means testing treatment of capital.
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So would my understanding be right that it counts the income derived from savings but does not ding you for the actual savings amount?

I suppose I could also possibly work it that when we are 50 ( which for us will be a couple years before university going kids), we use some DC pension lump sum money to pay off mortgage, then we would have relatively low "income" from ARF and qualify for fee and maintenance grants?
 
+ this table goes into more detail of the grant - seems you can earn up to 39,875k for the student to still be eligible to receive full 100% maintenance grant + tuition fees

[broken link removed]
 
Ndiddy said:
So would my understanding be right that it counts the income derived from savings but does not ding you for the actual savings amount?


m
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mainly correct but the guide is 33 pages long !
It looks like it takes into account a proportion of inheritances,
capital gains and
redundancy payments ( e.g. see page 23 of the guide) and
pension lump sums ( less clear!)......
It appears to be trying to be very sophisticated and more complicated than a tax return?!
 
Biennial Update - Age 48. 2 years to target.

Has been an interesting few years, with inflation and market impacts.

Summary as at Jan 2023:
  • Income combined Net €6k p.m.
    • Income 1: Up to €115k (moderate increase in base salary + bonus)
    • Income 2: up to €15k - part time role
  • Pension1: c€700k
  • Pension2: c€260k
  • Mortgage: Now €126k
  • Expenditure: nothing non standard
  • Savings & investments: €40k

2023 - 2025:
  • Pension: continue to max inc1 contributions / Inc 2 small 6% contribution (for employer match) =€42k p.a.
  • State pension U.K. - continue paying annually stamps - £150 p.a.
  • Mortgage: 10 years left
  • Income: Mrs, Not much scope for improvements as she only works 15 hrs a week (~15k pa)
  • Income: Mine, expect small annual increments around 3% - €115k-€125k
  • Expenditure: No major expenditure planned, Monthly Exp - Mortg\Food\living exp\bill\lifestyle = 5.6k
  • Savings & investments: Only small savings added outside of pension wrapper, will mostly spend any disposable inc.
At 50
Combined pension est: €1.1m (€42k p.a contr plus 5% growth)
Mortgage: €90k
Savings: €50k
Kids starting college @now, +2, +6 yrs

Future estimate

Annual Expense age: 50-59 - €58k-€68k (cost of living+college fees)
Annual Expense age: 60+ - €50k-€55k (cost of living)
State pensions at 66/67/68(?): €12k Ireland + €10k U.K. Spouse €12k Ireland.

Target update: Still focussed on main review at 50 as planned and take stock.
Option A - Continue working full time beyond 50 until age 52-55. (Until Pension is sufficient for expenses)
Option B - Leave at 50 as planned and take up a hobby/part time role for supplemental income and to occupy time until 60

50+O
 
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