Paul O Mahoney
Registered User
- Messages
- 1,844
Our estimated "extra" 3rd level cost (although some related to turning 18) for 1 at home 36 week term - assumed more or less self sufficient rest of period ( summer job I hope etc.) | cost |
registation | 3000 |
lunches | 1440 |
bus | 720 |
health insurance | 830 |
leisure | 1080 |
lost child benefit | 1680 |
home carer tax credit lost | 1600 |
10350 |
Her longevity is both sides, her Dad died young 68 but he smoked and gave them up at 60 "Senior Service " giving up killed him. She did smoke until 48 and gave up successfully , her mother has one cigarette a day at 90 .....moderation is key.Paul O Mahoney
"Her mother is 90 and longevity is a family trait."
Just remember that it may be true for only one half of the Mum/Dad scenario. Always remember my mother saying her mother told her there was no shafóid (daftness) in the family so she need never worry about that. Lo and behold, her (Mum's) father died from it
But if they pay for leisure, and we pay for health insurance, home carers allowance, not applicable, and I/we make lunches and breakfasts and dinners. Don't know why you added in " loss of child benefit " its moot.
Our estimated "extra" 3rd level cost (although some related to turning 18) for 1 at home 36 week term - assumed more or less self sufficient rest of period ( summer job I hope etc.) cost registation 3000lunches 1440bus 720health insurance 830leisure 1080lost child benefit 1680home carer tax credit lost 1600 10350
I presume a strategy would be to max out your tax free lump sum to €200k and use that as a buffer to get you from 60 to 68 when you will (hopefully) qualify for the State pension. That’s €25k per annum. Not a huge amount over that time period but not to be sniffed at as an annual income which is by its nature entirely tax free.
- How did you do it?
- Looking back, what advice would you give a couple in their early 50s who want to retire age 60?
- What would you do and equally what would you NOT do?
- What are the pitfalls to avoid?
Well we have 2 its 6k a year total for registration. They work part time for " pocket money " but we cover the rest so I'd budget €5k each if they aren't working part time €4k if they manage to get a few bob .
Now our daughter is hoping to do a Erasmus this year, she wants to go to the University of Sydney, why ? God knows but if that happens it'll be significant, even if she decides to do one in Europe its 10k min.
Not all do that of course but as another poster said it can be bottomless or at least feel that way.
Thanks. So 2 children 30 to 40k! Ouch
Over 3/4 years then theres the Masters and PhD....and the real "ouch" no tax relief.
20% relief on 3rd level fees when 2 kids are going together in the same year. Not a whole lot and should be on each child.
Hey DT
I retired at 60. I had an outline plan for a long time and started some detailed planning at about your current age, so your question is timely. Here is my shot at answering your questions in no particular order :
Knowing yourself/selves is critical. People have very very different priorities. A few examples of this as it applies to me. I had a very comfortable standard of living when I was working. I knew I wouldn't be poor in my old age, but I also knew that some of the working life luxuries wouldn't continue (top marque car, fine dining, etc). And I was fine with that. I came from nothing (my parents would dispute this) and regarded all that fancy stuff as transitory, to be enjoyed when I had it and not to be missed when it was gone. So I did an analysis of my annual expenditure (at age 52) and identified the stuff I was prepared to do without, leaving me with a clear idea of the income I needed for the decent standard of living I now have. That gave me the target income/cash pile I required and I built my plans around that. I had 8 years to figure all this out, and kept my finger on the pulse throughout (without it becoming an obsession). It also meant that I didn't suddenly wake up shortly after "R-day" with a chip on my shoulder because I was short of funds.
Another suggestion is to decide on your "house/accommodation" plan from now till death. That may sound drastic, but what are your expectations ? My parents left it too late to move out, and spent their later years rattling around a huge poorly insulated and somewhat isolated house. I looked at the downsizing/moving options and decided to stay in my existing house until the time goes to move to a nursing home. In making that decision I scored all the practicalities for each decade (60s, 70s, 80s). Comfort/warmth ? Garden maintenance ? Transport/Isolation? Shops/Social ? Having made the decision to stay put, I did an amount of work to "future-proof" the house - insulation, accessibility/mobility, south facing sun/reading room etc.
One other suggestion is to use any spare cash that crops up along the way to get rid of your mortgage/dump into your pension. Consider this any time you get a pay increase, bonus, tax cut/refund, windfall, legacy etc. Be brutal and do it immediately, if possible before the money is in your current account. It never ceases to amaze me that the whole country went nuts over the SSIA scheme, when pensions are an even better bonanza, just longer term. Also, this approach also helps you to start the process of cutting your cloth..........
There is lots more on the financial planning side, but you get my drift. Put a bit of time and effort into it now and a lot will fall into place over the next 8 years.
As has been pointed out by a number of posters, the non-financial side is also important (but not something to be afraid of). I had no fear on this front. I was never ever bored for as much as 1 minute at any stage in my life. I have never had a difficulty keeping my mind occupied. I had a very fulfilling and successful career, great colleagues, etc etc. But I had had quite enough of all that and I relished the day I left, said good bye to all of it and haven't looked back (Cut pretty much all the ties tbh). And the answer to all the offers of Consultancy, Project Work, Part Time work, Non-Exec Opportunities, etc etc was two words, second one OFF. I had a long list of things I wanted to do but never had the time to try, and this together with various ongoing interests means I am still short of time most days. I guess I am also fortunate that I am fearless about trying new things, and can throw myself into anything. I also fairly quickly got used to enjoying some "down time": simple things, like going to a pub on a say a Tuesday at 12:30, IT under my arm, sipping a pint and having my lunch, and heading home at 3pm. I never ever considered such a thing when I was working. But it is very very pleasant to do it now and again. I mention all this not as a template - we are all so totally different that many would find my approach an anathema. But its back to my opening statement - Know yourself - and plan accordingly. As an example of this I took a week off work when I was 54 or 55, and planned nothing in advance for the week. Each night before going to bed I planned a few things for the next day, including staying in bed for an extra 30 mins each morning, and I loved it. Walks, drives, visits, explorations etc. The freedom to do whatever I wanted.
Your 60s should, in my estimation, be the best years of your life. Free from constraints and demands, hopefully healthy, mellowed by experience and age, nobody pointing targets and expectations at you. You absolutely deserve a great decade, but you will only realise this if you prepare for it.
Sorry this is a bit rambling, but at my age I no longer feel the need to diligently arrange things in a logical and orderly fashion !!
Good luck.
Each to their own. My own parents put me through college and I am forever grateful to them for it. I’ve given money to them for home improvements. It’s not bizarre.I find this enabled helplessness and cosseting of adult children slightly bizarre; let them pay for it themselves with a combination of part-time income and a loan ergo early retirement might be more realisable.
Agreed. I'm of the opinion that school leavers should work for a year or two prior to going to university. Allow them to mature and also time to save.I find this enabled helplessness and cosseting of adult children slightly bizarre; let them pay for it themselves with a combination of part-time income and a loan ergo early retirement might be more realisable.
Taking a lump sum of €500k would suggest that you retired a pension pot of at least €2m. If that's correct, would imputed distributions not effectively force you to draw down more than €33k pa?When I retired (at 60) I took a cash lump sum of 500k (the tax free 200k and an additional 300k at 20%). I also had cash on hand. I drew down one of my personal pensions, such that it pays me approx 33k pa (the 20% limit).
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?