aurelius42
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Can you clarify exactly what you mean here please?Can't add to pension (e.g. AVCs) because single-income status means marginal tax rate + USC on draw-down later.
What's "COL"?Lifestyle not extravagant but COL suggests even <€50k pension might be a pinch?
Thanks @RedOnion Any rent would have entered an account in my name and declared under joint assessment, but the house was also in my name. I'm guessing you're thinking of Class S annual contribution perhaps? It was only for a few years in any case which may not have resulted in any entitlement come 66 for my spouse. Or perhaps you were thinking of something else...It might be too late now, but was the BTL income in your sole name, joint names, or your spouses name?
No, it was exactly that. But if she had been entitled to start class S contributions, then voluntary contributions could be made. Feels like a bit of a missed opportunity.Or perhaps you were thinking of something else...
I assumed Cost of Living?What's "COL"?
Thanks @ClubMan. I could contribute additionally to my pension via AVCs but there is little scope for any real gain. Any tax relief of 40% on the way in would be offset when I retire and draw down that increased pension (at 40% tax + USC + PRSI). The horizon before drawing pension is fairly short too.Can you clarify exactly what you mean here please?
What's "COL"?
Have you done out an annualised household expenditure to see what you actually need to live on?
I guess but even for myself with a similar few years of Class A PRSI contributions from way back, it amounts to only about €90/wk at best when I eventually can claim it. Without going back to renting (and all that entails) the amount would limited to just the years of renting unless spouse can continue to make Class S contribution in absence of income?No, it was exactly that. But if she had been entitled to start class S contributions, then voluntary contributions could be made. Feels like a bit of a missed opportunity.
Yes. The minimum prsi required for contributory pension is 10 years, with a maximum of 5 years voluntary in that.the amount would limited to just the years of renting unless spouse can continue to make Class S contribution in absence of income?
Thanks @RedOnion but 10 years maybe not possible given spouse's age. Also, checked HomeMaker scheme and they reject it as spouse had no PRSI contributions ever - a condition of its application. Always struck me as unfair for those disabled who simply could not work (or source unearned income) and therefore don't qualify for contributory pension - and non-contributory is means tested.Yes. The minimum prsi required for contributory pension is 10 years, with a maximum of 5 years voluntary in that.
All she needs is 5k unearned income to make class S contributions. From a tax planning point of view, all possible investments subject to normal taxation should be made in her name to benefit from her 20% tax band.
She could combine the S class with the Home caring periods scheme to get a contributory pension
Maybe demesne with better knowledge will chime in, but it feels like the best possible investment you as a family could make for her to qualify for a pension for the rest of her life if you could someone meet the criteria.
Homemaker scheme won't be relevant by her retirement age. Under Total Contributions Approach it is the Home caring periods scheme that applies.Also, checked HomeMaker scheme
I presume you mean "high rate"?The single income aspect means the marginal rate kicks in earlier than if there were two pensions.
Have you ascertained this for sure and checked if there is any scope for reasonable economising?And yes, household expenditure is probably in the region of €45k.
Did a fairly careful account of current expenditure to arrive at that - didn't strike me as extravagant!Have you ascertained this for sure and checked if there is any scope for reasonable economising?
Did a fairly careful account of current expenditure to arrive at that - didn't strike me as extravagant!
Some would be disability-related (maybe 15%) but not factoring kid support. To me it was in line with recent estimates for comfortable-ish pension for a couple.That's €3,750 a month. With no mortgage and no school-age children that's higher than I would expect. Are the extra expenses from helping out your children and healthcare costs for your spouse?
I'm a bit unclear. Are you using actual expenditure data or estimated data or some guideline?Some would be disability-related (maybe 15%) but not factoring kid support. To me it was in line with recent estimates for comfortable-ish pension for a couple.
Actual expenditure but not factoring (minor) kid support. Everyone's expenditure differs but aside from some additional healthcare costs, I'd view lifestyle expense as below average and not something I'd see (or favor) changing.I'm a bit unclear. Are you using actual expenditure data or estimated data or some guideline?
Other savings and investments: €150k cash mentioned above, no appetite for ETF/Funds etc. due to tax/hassle/fees
no longer want to rent, hassle
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