Retirement

oEmmao

Hi All,

I am looking for some information to get prepared for retirement.

So, im 35, paying the minimum into my pension and have 30k in savings.

What should i be doing, besides increasing my contributions?

What kind of figure should I have saved in order to live on about 300euro per week in my retirement?

Should I buy a house and rent it out or just save as much as I can?

I am married, hubby owns house outright and has about 10k in savings.

Regards

scheister

oEmmao wrote: »

Hi All,

I am looking for some information to get prepared for retirement.

So, im 35, paying the minimum into my pension and have 30k in savings.

What should i be doing, besides increasing my contributions?

What kind of figure should I have saved in order to live on about 300euro per week in my retirement?

Should I buy a house and rent it out or just save as much as I can?

I am married, hubby owns house outright and has about 10k in savings.

Regards

https://www.pensionsauthority.ie/en/LifeCycle/Useful-Resources/Pension-Calculator/

this link can be a good start. is the above 300pm including the state pension. if it is the above says €180 a month assuming no balance in pension.

oEmmao

thanks for that :)

once our contributions are maxed, is there anything else that will help to have a more secure future?

BrokenArrows

Dont forget about inflation!
You mentioned you want 300 per week. But lets say you retire in 2050 then to get 300 in todays buying power you will need 772.52 in 2050 (assuming 3% inflation)

300 in 2050 wont get you very far. in 2050 300 would be the equivalent of 116 today.

cooperguy

oEmmao wrote: »

Hi All,

I am looking for some information to get prepared for retirement.

So, im 35, paying the minimum into my pension and have 30k in savings.

What should i be doing, besides increasing my contributions?

What kind of figure should I have saved in order to live on about 300euro per week in my retirement?

Should I buy a house and rent it out or just save as much as I can?

I am married, hubby owns house outright and has about 10k in savings.

Regards

Does your employer match any of your contributions to your pension? If they do you should try put in enough to maximize this

oEmmao

my employer matches 4% so that is what im contributing at the moment

miketheDIYman

I am recently retired at 66 but finding I am not well prepared for all that free time ! Unfortunately I don't play Golf or have much of an interest in sports ( except big matches ) have not great eyesight for reading. I do some voluntary work on a regular basis, So has any fellow Boarders got any advice they can offer me to use up my time ?

valoren

It's all about income or rather passive income when it comes to retirement.
In order to be in position to have that income then starting early is best.
You have 30 years until retirement so I'd focus on looking for the companies that grow their dividends annually and continually contributing for more shares every 3 months. It's called dividend growth investing.

For example, I am looking to set up our 2 year old daughter with a trading account with DeGiro. She has €7,500 in savings currently (gifts, child benefit etc)

We could let these savings in the bank for the next few decades with her child benefit adding to it every month.

Or.

We could buy her 250 shares in AT&T now and get her started off with a dividend yield of 6%.
Every 3 months we would use her child benefit and her dividend payment and buy more shares in AT&T.
The current quarterly dividend is 50c or $2 annually.

Assuming the dividend is continually raised by 1c every year then when she is my age, 38, she will be in the below position. Note: She would no longer invest the child benefit from 18 but would simply be reinvesting the dividends alone.

Her initial share count will have increased from 250 to 4678 shares. The annual T dividend would be $3.28, rising by 1 cent every year, so in 2055 so she'll be getting gross $15.947 per year. I've used a range of simulated stock prices for reinvestment purposes but for arguments sake we'll assume there have been no stock splits and the price of AT&T is $55, then she'll be worth $257,290. Not bad considering she stopped contributing fresh funds at 18. If she decided to contribute 300 every quarter of fresh funds of her own, she would hold 5292 shares paying $18,000 and worth $285k

AT&T and it's dividends could then become a golden goose allowing her to reinvest her dividends in other companies if she wished to diversify until she retires herself.

That's just an example. The same principle applies to any dividend aristocrat or dividend champion.
Buying at fair value + reinvesting an increasing dividend stream + fresh capital = a solid retirement.

Spanish Eyes

miketheDIYman wrote: »

I am recently retired at 66 but finding I am not well prepared for all that free time ! Unfortunately I don't play Golf or have much of an interest in sports ( except big matches ) have not great eyesight for reading. I do some voluntary work on a regular basis, So has any fellow Boarders got any advice they can offer me to use up my time ?

Have a look at Men's Sheds in your area. Could be ideal. (If you are a man!)

http://menssheds.ie/

Go somewhere once a week on your free travel pass if you are near public transport. Even if you are on your own, it is a great way to check out different parts of the country. Day trips are good too.

Go for a walk every day even twenty minutes is great.

Download audio books if your sight is not great.

There are so many things, but you have to be motivated/interested enough to do them.

The J Stands for Jay

oEmmao wrote: »

my employer matches 4% so that is what im contributing at the moment

Then you're nowhere near maxing your pension contributions.

Cute Hoor

Fair play Emma,planning ahead for 35 years time, you also seem to be in a good place financially right now. My tuppence fwiw.

Max your pension payments if they all qualify for tax relief at 40%, the earlier you enhance your pension pot the better return you will get when you retire. Try not to pay too much to your pension fund manager.

I'd be cautious about purchasing one stock such as AT&T (or any other), the outlook may look good now but anything can happen and I wouldn't be putting all my eggs in just one basket. If you were to invest in stocks I'd suggest going for ETF's, that way you'd be spreading your risk.

Cute Hoor

miketheDIYman wrote: »

I am recently retired at 66 but finding I am not well prepared for all that free time ! Unfortunately I don't play Golf or have much of an interest in sports ( except big matches ) have not great eyesight for reading. I do some voluntary work on a regular basis, So has any fellow Boarders got any advice they can offer me to use up my time ?

A tough situation to find yourself in, not being prepared for retirement. The voluntary work is great, for yourself and the beneficiaries. The mens shed suggestion is a good one. Joining a walking/hiking/cycling club could be a possibility, improve your wellbeing as well as meeting up with new people.