Thanks for sharing - interesting. I've been doing some similar calculations but in less detail that you. Turns out Mrs TTP and I are nearly at 5k per month there by just combining: 1 UK state pension each, 1 Irish state pension each, 1 NHS pension (8 years' service), 1 UK university scheme pension (12 years' service). I've just set up an Exec Pension now, but really not sure I need to kill myself working hard until I'm 65 to max my pension.The figure we came up with is €5k net a month in today’s terms. So if we were retiring today, we’d want €5k a month net to cover all angles. And that gives plenty of wriggle-room. It might sound like a lot to some people or a little to other people. I was actually surprised and expected it to be more.
UK pension kicks in at 67 for you probably, Irish state pension at 66 (though that may rise).working hard until I'm 65 to max my pension.
Likewise, thanks for sharing. I think it’s a useful exercise to share. AAMers are prudent by definition, but the big takeaway for me is that it was less than I thought so I could hang up my boots earlier than I thought. Not that I will, but it’s comforting to know that a time will come when you don’t absolutely have to work.Thanks for sharing - interesting. I've been doing some similar calculations but in less detail that you. Turns out Mrs TTP and I are nearly at 5k per month there by just combining: 1 UK state pension each, 1 Irish state pension each, 1 NHS pension (8 years' service), 1 UK university scheme pension (12 years' service). I've just set up an Exec Pension now, but really not sure I need to kill myself working hard until I'm 65 to max my pension.
The figure we came up with is €5k net a month in today’s terms. So if we were retiring today, we’d want €5k a month net to cover all angles. And that gives plenty of wriggle-room. It might sound like a lot to some people or a little to other people. I was actually surprised and expected it to be more.
Yes I guess that is a reasonable assumption regarding kids in the future. Both are planning to pursue professional qualifications in the medical field so all going well they will have good paying careers from an early age. Of course, I have no crystal ball so can only speculate as to how that will unfold.Did you add in the extra expenditure purely because you have more free time? Able to go away whenever you want? Spending more money purely because you aren't in work. Retirement isn't as cheap as people think it is.
Doesn't mean the kids won't be looking for financial help. "Help the kids out" is now a common expenditure for parents, especially with the way house prices are. I wouldn't presume that they will stop being an expense once they finish college.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
NHS and uni pensions kick in at 60. Exec pension I have control over when it kicks in so just need to sequence it.UK pension kicks in at 67 for you probably, Irish state pension at 66 (though that may rise).
You might need to bridge the gap.
That's a good way to look at it, start with net monthly requirements, work forwards.
Begs the question, how to reverse engineer that 5k a month into gross pension pot needed at retirement to fund 30 years retirement.
Even a back of envelope type calc that takes in state pension from 67, tax, assumes retire when state pension kicks in. Or is there an online calculator for this?
So you recon a pension fund of €1.5m will provide an annual pension of €50,000 (€1.5m divided by 30)?Yep working out your expenses is key. As mentioned higher up, re the general rule of thumb figure = 25x annual exp. (google 4% rule)
Calculating at retirement age makes it quite simple as you don't need to adjust for higher drawdown initially. -Annualise the €5k = €60k - minus any state pension entitlement/other income, then multiply by 30. (assume inflation is covered by fund growth).
Its a very basic back of the envelope idea.
based on the question asked "to reverse engineer that 5k a month into gross pension pot needed at retirement to fund 30 years retirement."So you recon a pens
So you recon a pension fund of €1.5m will provide an annual pension of €50,000 (€1.5m divided by 30)?
Yep, that’s why I use 5%.
Better to end-up with Gran Reserva instead of Reserva through investment performance rather than ending-up with Crianza because your plan was too aggressive…
It's not very straight forward. We have different sources of income becoming available at different times and at different taxation levels. Also, most people take their ARF income as a percentage and not as a fixed amount, so that income will vary too.That's a good way to look at it, start with net monthly requirements, work forwards.
Begs the question, how to reverse engineer that 5k a month into gross pension pot needed at retirement to fund 30 years retirement.
Even a back of envelope type calc that takes in state pension from 67, tax, assumes retire when state pension kicks in. Or is there an online calculator for this?
The figure we came up with is €5k net a month in today’s terms. So if we were retiring today, we’d want €5k a month net to cover all angles. And that gives plenty of wriggle-room. It might sound like a lot to some people or a little to other people. I was actually surprised and expected it to be more.
If your were to retire today, hypothetically speaking how are you going to fund the €5k a month which I presume is around the €90 to €100k a year gross.
It’s nowhere near that actually. With two incomes, it’s about €68k in total from age 70.
. .. it's a good 15 years away for us and a lot can/is going to change in those years with regards to taxation and wealth
Yeah it's a topic that I hear myself from time to time and something that crosses my mind at least a few times a yearI am running into more and more people, who are considering retiring abroad, primarily due to concerns about Ireland's future tax regime.
I am running into more and more people, who are considering retiring abroad, primarily due to concerns about Ireland's future tax regime.
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