How much monthly income do I need if I retire now?

Any idea where I can source self-flagellation whips for a good deal? I heard that the Iberian Peninsula is worth checking out which kinda makes sense as they usually have excellent prices and quality on leather. Just wondering if there is a limit in how many I can bring in? Strictly, personal use - absolutely no "funny" stuff, whatsoever.

The discussion on how much cancer sticks (where cancer here includes heart and other diseases) one can bring in is akin to my search for whips. It seems that people have worked out that to damage themselves in one country costs x but that the same damage in Ireland costs 2x. And so there's too much of the "what's the financially savvy way to mess up me health" about all this. As WhiteCoat has inferred, smoking is just a very, very silly practice.
 
My back-of-the-envelope calculation suggest I'd need €3k/month to comfortably retire (based on: 2 people, mortgage & debt free, empty nest).
 
Did this calc last year as part of a general review, similar to Michaelm above - 2 people, nest now empty, mortgage paid / no debts, make do with one car. We estimated 40K p.a. would keep us going, allowing the usual household expenses.
 
michaelm said:
My back-of-the-envelope calculation suggest I'd need €3k/month to comfortably retire (based on: 2 people, mortgage & debt free, empty nest).
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Funny I always seem to do mine on the back of a cigarette box , I would agree that the €3k (net) should be more than enough for most people but as Duke and Elacsapau (and me somewhat) have pointed out that it really does depend on what you have been used to and what you expect the quality of your lifestyle to be in retirement, kind of a horses for courses situation or elacs theory or relativity
But what I find interesting about these type conversations is the "relative value" we all put on our spending/purchases or more the thought process behind these decisions
where I would spend a lot on eyewear and Duke would not but on the other hand Duke would (I presume) spend more on the purchase of a car then I would now
 
michaelm said:
My back-of-the-envelope calculation suggest I'd need €3k/month to comfortably retire (based on: 2 people, mortgage & debt free, empty nest).
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That seems reasonable to me.

I guess the next question is what level of retirement savings would you need to be confident that you would be in a position to meet that level of expenditure?

I would have thought that a combined pension pot of around €1million should do it if retiring at 60.
 
3k p/m with a pot of 1 million in today's money retiring at 60 will be our goal. It is a long way away for us but nice to dream.

The above could potentially be subsidised by downsizing, inheritance, state pension or taking in students but none of these feature in my calculations as a whole lot can change between now and when we turn 60.

V rough break down of potential expenses

Monthly
Phones €80.00
ESB/GAS €150.00
Car Tax 1 €25.00
Car Tax 2 €15.00
Phonewatch €40.00
Car Insurance 1 €40.00
Car Insurance 2 €40.00
TV €30.00
Broadband €35.00
Bins €40.00
TV Licence €15.00
Petrol & TRAVEL €130.00
Dinners/shopping €300.00
VHI €200.00
Social €750.00
car & house maintenance €300.00
Property Tax €100.00
life & home insurance €100.00
Hair and Makeup €60.00
Miscellaneous €200.00
Clothes €150.00
Christmas/Hols €200.00
Total €3,000.00

I have read a good bit of "the number" thread on money saving expert and it seems to be heavily weighted towards an extremely frugal lifestyle in retirement. Whilst this may suit some it wouldn't be my cup of tea.
 
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“have pointed out that it really does depend on what you have been used to and what you expect the quality of your lifestyle to be in retirement, kind of a horses for courses situation or elacs theory or relativity
But what I find interesting about these type conversations is the "relative value" we all put on our spending/purchases or more the thought process behind these decisions”

Its very much an individuals attitude to lifestyle costs. People have way different attitudes. Example: We have 4 mobile phones in our house, and we pay €40
in total per month, i know people who pay €250 for the same 4 phones. Of xourse we bought them and are on pre-pay.


Assuming totally debt free, and kids are gone, and have gone through college.

I have worked out that, all our household bills, excluding food, is about5k per annum, thats all bills coming into the house: ultra basic health insurance, phone, broadband, tv, mobile phones(2) gas, electricity, tv licence, annual LPT , car tax(2)car insurance(2), car annual servicing(2), car NCT(2), Bins, and house insurance. Thats my rough baseline amount, and electricity gas are quite low due to previous investment in the house, insulation, solar panels etc.

So, i came up with a total requirement of about 36k nett income annually, less 5k for all household bills, leaving 15.5k each for our own spending/groceries or €3,000 nett income per month for the both of us. That covers everything, except, big holidays, car replacement, and big household purchases, or work on the house. 15.5k each gives €300 weekly each to cover groceries and going out, hobbies etc. At this stage all household bills are paid, and groceries should come in around €100 ish per week, so that leaves about €250 each, totally disposable income.

Of course, that implies that we have a good bit of savings, say 150k, as well as a pension pot of close to 1 million between us, which we should have when the time comes.[/QUOTE]
 
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Playing around with some numbers -

Let's take a couple retiring today; both have just turned 60 with a pension pot of €500k each.

They both take €125k as a tax-free lump sum (25% of €500k) and transfer the balance of their respective pension pots to A(M)RFs, from which they will initially draw down 4% (€30k in aggregate) per annum.

Let's assume the A(M)RFs are invested to perfectly keep up with inflation, net of fees, but no more than that.

So €30k per annum drawdown, keeping pace with inflation, plus a €250k lump sum.

Tax/USC/PRSI of ~€3k per annum as things stand (at least until they hit 66). So €9k annual "subsidy" from the €250k to bring them up to €36k per annum. With (hopefully) the State pension still to come...

Lots of assumptions, obviously, but it seems to add up.
 
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michaelm said:
But it is cool, and it will keep you thin.
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…...plus, you are doing everything you can to manage the longevity risk (in terms of not using up your complete "retirement pot/savings" whilst still alive)

Serious question and on topic: Is it possible for some kind soul to tabulate the spending breakdowns submitted? I think it will help to illustrate required v. discretionary spending and to highlight variances (i.e. if your payment in respect of a specific item/category is out of line with the normal range, the "overspend" will be highlighted and you will be able to consider whether this makes sense for you [e.g. see Cervelo's example about specs] or whether you are paying over the odds.)
 
elacsaplau are you forgetting your own theory of relativity

I'm not sure if tabulating or breaking it down to monthly figures would make my base spending (20K) any clearer to understand, just divide by 12 or 52 and you will get the monthly/weekly figures
In relation to the other spending what would I presume would be discretionary, you would have to be comparing like for like to get a proper feel for what would be normal
My late father once said to me "never put much faith in what people tell you what they paid for something because it will nearly always be cheaper than you've paid"

re my fibre bb last year I got a deal with Vodafone for €10 off €45 for 12 months, today their offering me 12 months €0 for 6 months and €45 for the next 6 bringing my bb down from €35 to €22.50 pm
 

David Glad you have looked at your expenses in detail which is the most important point in my view.
I previously posted along the lines of" have you included?" . Most items are now there so here is only what i still don't see explicitedly covered.
"Have you included car replacement cost (2k?) a year perhaps,
costs at college ( travel, lunches, books, student contribution(3k) , socialising, sports , driving lessons etc.),
unreimbursed health expenses ?"

Among the numbers Dinners/shopping €300.00 seems v low as someone who actually does all the weekly shopping !
 
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