Is it wise for me to remortgage to fund a renovation, and rent a room to help fund?

Thank you for confirming. I will increase from 8% to 15% based on this. And with the company contribution that's 20%.
So I will go from sending 600 ish per month, to 1100 ish per month, plus 360 ish from my company.
I'll potentially increase this again once I make some decisions re house/savings

From a quick google, I think I am eligible for a state pension too. I know that's not much to bank on, but I've been paying taxes since I was a teenager so I assume I have enough credits.
 
Honestly said:
Thank you for confirming. I will increase from 8% to 15% based on this. And with the company contribution that's 20%.
Click to expand...
I think you've misunderstood me. That's not maximising your contributions up to your age related tax relief level.
Honestly said:
From a quick google, I think I am eligible for a state pension too.
Click to expand...
You need 2080 reckonable PRSI contributions/credits to qualify for the full state contributory pension from 66 (it can be deferred to obtain slightly more). You can check your PRSI record via myWelfare.

Statements and Refunds

<p>Make a repayment, or apply for a payment statement, contribution statement or PRSI refund</p>
services.mywelfare.ie services.mywelfare.ie
 
No I did understand, I just made a different choice. I am almost doubling my contribution, I think that's all I can afford right now. That had been effectively what I was saving monthly, so I am really going to have to watch if I want to continue saving 500 per month, and increase my contribution to my pension by 500. I should have made it clearer.

Thank you for that link for a statement, I have 752 credits, but lots of fun letters in there for each year.
Screenshot 2025-02-24 at 12.42.45.png
 
Damn, I need 2080 credits and I have 40 - how can that be if I am working and paying taxes since I was 15?

There were lots of contributions with A's, J's etc on them year on year. I'd take a screenshot and show you but the website isnt letting me log in now.
 
Honestly said:
Damn, I need 2080 credits and I have 40
Click to expand...
No. You need 2080 reckonable contributions/credits for the full pension. You currently have 752 and maybe 26+ (?) years to get more. If you didn't accumulate more (which is unlikely if you're still in your 30s?) then you would probably be in line for 752 / 2080 or c. 36% of the full rate pension. To get the full pension you'd need 2080 - 752 = c. 25 more years of contributions/credits. You're young enough to manage that through ongoing employment, early retirement pension income if applicable, and voluntary contributions if necessary. You shouldn't worry unduly about this at your stage of life.
 
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Honestly said:
how can that be if I am working and paying taxes since I was 15?
Click to expand...
Under 16 class M and low pay class J contributions are not reckonable for contributory pension purposes.

PRSI Class M Rates

www.gov.ie www.gov.ie

PRSI Class J Rates

www.gov.ie www.gov.ie
Your statement should clarify what contributions/credits you have for your working life so far. If there are gaps in your record that you think are incorrect then you should contact social welfare to have them looked into.
 
I think you've very appropriately pivoted from your original idea to taking pension advice which is great.

Respectfully I'd challenge your "I've increased my pension to X and thats all I can afford".

You don't have kids, you don't have a partner, so you absolutely need to bulletproof your pension as you don't have a safety net.

You're spending €5,000 a month on what? Let's say you're like me and like to eat nice food in and outside the home. So you spend €100 a week on groceries, say another €200 getting lunch and dinners out, drinks etc. That's another €1300 which we will round up to €1500. Heck, say you go all out and spend €2000 on food and socialising for yourself.

That leaves €3000. Where's that gone? €1,000 on bills and pets etc.? Wheres the other €2000?

You could be in a much better financial position to protect yourself against retirement.

Do you have income protection?

I think if you spent 5 years maxing your pension and paying off your mortgage faster (let's say you dropped your post tax income to 5,800 and spent an additional €500 p.m. off the mortgage) you'd still have €4300 to sort out bills and live your life.
 
I would definitely looked at increasing it to the maximum particularly if you are thinking that your income will reduce in the future or you want to work part-time. I think the general comment is that your monthly expenditure of 5k is substantial and that your finances could be looked at more closely to ensure you can do everything you want in the future. As a family of 4 (3 adults), our monthly expenditure is a bit less than that. We make choices but at the same time we do everything we want and don't deprive ourselves.
 
Your spending rate is excessive in my opinion. That would be where I would focus my efforts on to build a long term sustainable future.
 
I dont have kids, but I do contribute to helping to support some friends who are poorly etc, a chunk does go to that too.
Thanks for the guidance, got it loud and clear.
I am gonna set up some proper budget monitoring tho, I dont feel like I spend excessively but hard facts will answer that question.
 
I would. My children currently cost us in excess of €1000. That is without their keep or anything we do as a family (food, trips, transportation). I would be surprised, or you would be extremely generous, if it came to be anything close to that.
 
Thanks for taking all of this on board.

Can I say something thats meant kindly? It's not sustainable to help people out financially to the point where it is a regular monthly financial commitment. In fact, as a cynic, hearing this story makes me think you're being taken advantage of. You cannot be peoples financial safety net.

All the best with your budgeting!
 
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