Hi Sinbad75,
Firstly, well done - you are in good financial shape.
Based on your assets and future contributions, it is definitely possible for you to retire in 10 years.
It is even probable that your assets will be sufficient to support your desired income (in real terms) for the remainder of your life, if appropriately invested. By this I mean not taking excessive or insufficient investment risk.
Of course, it's not certain, though, because stuff can happen between now and retirement or in retirement. Then again, what is certain in life?
All things being equal your retirement financial readiness would be stronger at, say, 58 compared with 53. The question is whether such extra years would be too high an opportunity cost - for example, what would happen if one or both of yee was to pass on at 55, 60, 65, etc.? Some people really like their work, others don't, etc.
In summary, it is a workable goal that you probably need to fine tune. There are loads of moving parts!
I think Retired2017's point is well made as it looks like your future pension contributions could be increased - you are otherwise foregoing valuable tax relief which should be of clear benefit to you.
Don't mean to sound smart but why are people looking to retire at the age of 53/55? I know plenty of people around the 60-65 mark and they are dreading retirement, working gives you a purpose and a reason to get out of bed every day.
No doubt there are some people you write about, but I can assure you there are many and I mean many who think retirement is fantastic. It might take a bit of getting used to but one can learn how to turn over and have another hour in "the leaba" with the wind blowing outside and the rain hitting off the windows and roof, you can arrange a game of golf any day of the week you want, have a very leisurely lunch with the other half or some friend or other, jump on the train for free and head off to the city for a day, get around on the bus and see the sights at your leisure and won't cost you a thing. There's plenty of discounted goodies for the 'ould wans too, head off on a holiday at quiet times and good prices, I love reading and it's great to take up a good book and not be rushed to do anything but stay reading it. Then there's the advantage we can take of others who think we have to be careful and they do things for us FOR FREE. I'LL JUST LEAVE IT THERE AND WON'T MENTION ALL THE THINGS WE ALWAYS WANTED TO DO BUT COULDN'T. You know yourself, so ta ra love and hope I see you rushing about somewhere tomorrow, i'll be listening to the rain for a while in the morning and a late fry up I think
I have seen people who neglected there own pensions, helping there children to get on the housing ladder ,Glass half full or glass half empty type of person. People need to get a life, enjoy it, stop worrying about this that and the other all the time. When the time comes to decompose for all of us, make sure you've spent it coz someone else will do it for you.
How much net Income will they have to live on after saving 75K ,just like to see how you came up with the figures,@sinbad75
While none of us knows how long we will live, I think you should be thinking in terms of pre-funding 35 years' of expenses if retiring at 55. Your desired spending is €42k pa, so you that gives you a "number" of €1.5million, in 2019 terms.
You currently have a paid for house and ~€750k in savings. You are planning on saving €75k pa so you should reach your €1.5m number in 10 years.
I'm assuming that the return on your savings, net of all costs and taxes, will match inflation. I'm also ignoring the State pension.
Lots can happen over the course of 10 years but it looks like a decent plan.
They are hoping to spend €42k pa - €42kx35= ~€1.5m.How much net Income will they have to live on after saving 75K ,just like to see how you came up with the figures,
HIAge:
43
Spouse’s/Partner's age:
45
Annual gross income from employment or profession:
E64,000
Annual gross income spouse:
E80,000
Type of employment:
Both private sector employees
Expenditure pattern:
We are both generally 'savers'
Rough estimate of value of home
E400,00
Mortgage on home
0
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
E300,000. After pension contributions saving 2k pm.
Do you have a pension scheme?
1. 275K, between avc and employer contributions 32k currently added per year.
2. 169K, 20K added per year
Do you own any investment or other property?
No.
Ages of children:
9, 12
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
We would like to retire in 10 years. With our current pensions and savings is this possible? The kids will most likely go to college, but may live at home.
Thanks
Don't mean to sound smart but why are people looking to retire at the age of 53/55? I know plenty of people around the 60-65 mark and they are dreading retirement, working gives you a purpose and a reason to get out of bed every day.
Don't mean to sound smart but why are people looking to retire at the age of 53/55? I know plenty of people around the 60-65 mark and they are dreading retirement, working gives you a purpose and a reason to get out of bed every day.
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