Cost Neutral Early Retirement

maude6868

Don't know if this is the right place to ask this question. I have done 22 years teaching. I started in 1993. I pay PRSI D rate. This year I have 2 children going to Third Level and I'm only entitled to the fees paid, over the threshold for any grant. My husband is unemployed and I have 5 children. I get FIS of 79 euro a week and we all have GP cards because my income is low. SUSI only looks at gross income which is very unfair and leaves me in a terrible position. My question is would I be better off to retire next year on a cost neutral basis. My gross is 55,000 approx and my gross for USC purposes is 62,000. I have a B post for the past 8 years. My take home pay is 826 a fortnight. I can't pay rent and food etc for 2 children in college and keep 3 other school age children going on that amount a week. I will have to pay 70 each a week for their rent and the same again for food and travel etc. That amounts to 280 a week just for them. I have a mortgage, car to run, food to put on the table etc. I'm now of the feeling that if I retired I might be better off. Can anyone give me a rough ballpark estimate of how much a week I would have on cost neutral retirement if I retired next year. I assume my FIS would be much larger if I retired, my 5 children would get full grants and I would get Medical Cards and Back to School Allowance. Is this right? If so would I be better off to retire and can I do this?

spurious

If you work for an ETB, they will have a staff member in Head Office who will work out your entitlements (they're used to it).

The Department have a page on CNER : https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/Teaching-Staff/Cost-Neutral-Early-Retirement/

I'm not sure if the lump sum would affect your FIS and GP cards. You'd need to check all that out.

2011abc

Don't rush into this without doing LOTS of research .Id imagine your 'pension ' would be tiny .Im in a very similar position and from what little homework I've done on it I couldn't dream of leaving for another 7 /8 or more years .Pretty sad state of affairs to read this post about state of country .Sorry for your trouble .No part time work available for college students?

afkasurfjunkie

Your take home pay seems very low or am I missing something? Can you avail of your husbands tax credits even?

2011abc

Yeah ,that take home can't be right unless OP has tons of deductions at source ( most /all of which should be avoided like the plague )I'd guess you'd be WORSE OFF than on state's old age pension ie 200-250 a week .GOING AT 50 you get 62% of full pension which is 50% of final salary .Lump sum is about 82% of 1.5 times final salary .If you're under 50 you may not even be able to retire unless maybe via critical illness where they can add up to 7 years to your service .Most teachers who spent 4 years in college get a year 'allowed' to pensionable service for the 'HDipEd'

maude6868

Thanks for the replies.Yes that's my take home pay to the penny. I don't pay into any AVC's etc. I don't have Health Insurance, can't afford it. There's absolutely no deductions coming out of that. I'm not sure about my husbands tax credits. He's always been a house husband. I get carers credits for that I think. My husband and 2 of my children have full Medical cards and the rest of us have GP cards. I'm only 47 so would have to wait 3 years until I'm 50. By that stage I will have paid a fortune for 2 children in college. They are working during the summer but that will only do them for a month or two in college. I really am so worried and SUSI don't care. They just implement their grant system according to the rules, there is no leeway for individual circumstances. It's very unfair. If my income is low enough for Family Income Supplement you would think I'd be entitled to some maintenance, but no.

maude6868

Oh my God, I just read my first post and I mistakenly said I take home 826 a fortnight. It's 826 a week I take home. I can't even consider retiring until I'm 50 anyhow. Hadn't realised that. Thanks again for the replies.

2011abc

I don't think you will be allowed retire at 47 unless through critical illness .Even if you could ( without the 'bonus' years for illness) your weekly pension would almost certainly be under 200 .Youd be going from the frying pan into the inferno unless entitled to a lot of state relief I'm not aware of .Would you get rent allowance ?

maude6868

Not sure about Rent Allowance but my FIS would be quite big, having 5 children. With 5 children 950 a week is the threshold so if I had say 200 a week I'd be entitled to 60% of the difference. I'd also get Back to School Allowance. I would imagine I'm in a situation where it's not worth my while working and I'd be far better off not. The full grant for both daughters would amount to a lot of money gained.

2011abc

I'm guessing you'd have to word this very carefully .Job Seekers allowance etc may not be available for someone who voluntarily left employment .

maude6868

Yeah maybe. I won't have to make any decisions anyhow until I'm 50 but I'll seriously consider it then. It's then I'll need a lump sum, no matter how small, not when I'm 60. Thanks again.

DK man

op - you need to be living more than 45 Km to get full grant which works out about €90. / week.

Also - you add about €5000 to the threshold for every additional child or parent attending a college course... Would sending the oul boy on a Plc course make the maths work???? With child numer 2 and oul fella that would mean that you can add @ €10,000 on the the income threshold...

A full grant for two would work out about 7k per year. You can't be that much over the threshold - maybe worth looking at parental leave or job sharing...

It's very sad and one of the greatest flaws of this country - that you might be better off when college grants and medical cards are factored in giving up work or only marginally better off working

maude6868

I don't know anything about PLC courses but yes I'm sure he could do that, it would be a good idea from what you're saying. Yes my second daughter will get her fees paid but she won't get a grant according to SUSI. My first daughter will get 50% fees paid. This still leaves me with a huge amount to pay. If you consider what I would pay for 5 children to go through college I would be far better off not working. Would he be entitled to any allowance for doing such a course?

maude6868

The thing is I'm sure he wouldn't get BTEA allowance because he's not on jobseekers and it would probably cost money therefore to do a PLC as well. Catch 22 really.

maude6868

If I took parental leave or job sharing I wouldn't be entitled to the grant until the following year so in the meantime I would be screwed (pardon me) totally. My husband doesn't exist as an individual. He has absolutely no income. He's not entitled to jobseekers because that's based on my means. He can't get any allowances either because of my gross. He often says if he left me we would be in a far better situation and so would he because he would be a person in his own right entitled to allowances.

maude6868

The other factor for me is the increase in income threshold is only for the additional member attending college. My eldest daughter is assessed on all my income so she gets only 50% of fees paid. My second daughter is the additional member so she gets that credit which gets her full fees paid. If my husband did a course he would be an additional member of the family attending further education so he would get the 5000 or so taken off my gross. It doesn't come into effect for all members of the family, just each additional member.

solerina

Sounds very unfair, especially when public opinion thinks we are on a massive gravy train....Have you gotten onto any local politicians...I know Susi should be above influence but I also know of a family who were rejected initially but with the help of a local politician got full grants for their eldest 2 daughters.

spurious

Do you not get your husband's tax allowance/credits?

maude6868

I think I get my husbands tax credits but I'm not sure. Would I see that on my P60 or P21 or should I contact the tax office. I have got on to a local polititian who is helping but to no avail. He asked the question in the Dail but got the standard reply from the Minister that this is the fairest way of assessing everyone. He did point out that on one hand I'm being told my income needs to be supported by FIS and GP cards because it's too low according to standards while on the other hand I'm expected to pay out thousands on Third Level. He got nowhere with SUSI though. I will appeal but I know that won't work. I'll keep trying.

trihead

I think you need to speak to your kids who are planning to go to College and see can they do their course at a PLC / Further Education College - or the first 1 or 2 years and then transfer. This can be a lot cheaper yet and they can still get a degree.

Other option is for them to take out a loan from the credit union ( if they have good saving history though)

Another option is to speak to them and see if one of them would take a year off and get a job and save for a year ( this depends a lot on your location but it is not impossible)

Sorry to be blunt but I don't think you can afford to send them both to University/IT so close to each other.

Geuze

maude6868 wrote: »

I think I get my husbands tax credits but I'm not sure. Would I see that on my P60 or P21 or should I contact the tax office. I .

Yes, tax credits are listed on P60 and P21.

DK man

maude6868 wrote: »

If I took parental leave or job sharing I wouldn't be entitled to the grant until the following year so in the meantime I would be screwed (pardon me) totally. My husband doesn't exist as an individual. He has absolutely no income. He's not entitled to jobseekers because that's based on my means. He can't get any allowances either because of my gross. He often says if he left me we would be in a far better situation and so would he because he would be a person in his own right entitled to allowances.

The previous years income is just a guide - we have students in our school whose parents lost jobs and were entitled to grants even though figures didn't stack up on paper...