First, PRSI is linked to the State Pension, it is not directly linked to PS pensions.
Look at your pay slip, are there deductions for a PS pension? That is one way to know if you are in a PS pension scheme.
5. Hoping to retire a few years before the 68 timeline (60 or so).
4. Is buying an apartment a better strategy as an investment (with the sky high prices currently)? I am already paying 950 PM rent.
3. Opened a DeGiro Account recently and thinking of investing in ETFs/Shares etc from the savings. Any thoughts if this is a good strategy.
First, PRSI is linked to the State Pension, it is not directly linked to PS pensions.
Look at your pay slip, are there deductions for a PS pension? That is one way to know if you are in a PS pension scheme.
Also how many years service do you have in the public sector - this is key in terms of your planned retirement age and how best to proceed. When did you join the public sector - are you on the pre-2013 pension scheme?
Thanks. I dont have PS pension deductions on my scheme. But PRSI leads to that down the line is my understanding. I will be talking to HR about this.
Thanks. I dont have PS pension deductions on my scheme. But PRSI leads to that down the line is my understanding. I will be talking to HR about this.
I am in public sector for almost 10 years now. Yes it was pre-2013. (although I did change institution but I understand that as long as its public sector it doesn't matter).
Age: 42
(Paying PRSI for last 10 years; I am unsure how PRSI payments do provide for a Public sector pension; any reading material on this appreciated).
You need to be realistic about your retirement age. In your circumstances, 60 seems to be extremely optimistic. You don't currently own your own property so if that doesn't change, you will have a very high cost of living (because of rent) into retirement. How do you plan to fund your retirement. You are currently spending €2600-2800/m on rent and lifestyle.
When you say 'as an investment', do you mean to live in or rent out to rental income? Hopefully you don't mean renting it out because that would be a bad idea?? Purchasing a sensibly priced property would be the best use of your €34k savings and will dramatically improve your cost of living. It would also allow you to consider the rent-a-room scheme where you can receive up to €14k tax free rent. Purchasing a property for yourself to live in is a sensible option
In your situation, I think this is a bad idea. You need to prioritize home ownership first and then target clearing your mortgage. If you have no experience with investing and start picking shares at random, you are running a real risk of losing money.
As for 1 & 2, I'm not particularly knowledgeable on on PS pensions but as a starting point, contact your payroll/HR and they should point you in the right direction to find relevant info
Other than that, I think you need to have a good look at your spending and budgeting habits. After rent and savings, you are spending €1650-1850/m on everything else. This sounds high to me, especially for someone who wants to retire early and currently only has €34k of wealth. You should really be saving an awful lot more than €400-600 if early retirement is your goal
That sounds much betterOn the current salary of 3200 PM I plan to save at least 1 -1.2 K a month.
It is sizeable but the best investment that you can make right now. Build your savings towards €50k and then buy the best value apartment that you can. If you can (and are willing to) rent a spare room, this can be a very profitable investment for your futureMy issue is however the huge investment upfront for this in a market that is out of control on prices. For where I would like to live, most apartments (1 or 2 bed) are at least 210 to 240 K. Given the upfront investment and additional costs (duties, maintenance fees etc), its a sizeable investment.
That is unfortunately a common problem of contracts but I would advise going through a broker. They can deal with multiple banks for you and should be able to help you show that you have regular employment even though it is contractNot to mention that being on contracts, I expect mortgage lenders to cause significant issues ( from a case of a colleague who didn't get one because he was single and on contracts going for a 1 bed apt). Hence my hesitation going down that road.
Any advice specifically on the mortgages?
It is not that DeGiro or ETF's are bad or too risky in general, it is more specific to your situation. If you put most or all of your savings into an ETF, you will not be able to purchase a property. You will end up renting for several more years and ultimately costing you a fortune. The value of your ETF may increase but you will have cost yourself multiples of this amount in rent so it is not a good idea.As for DeGiro, I am only looking at long term ETFs for now. Is that still too risky? Indeed I would rather put investments towards pensions.
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