How much savings do you have and what age are you?

Cobalt17 · 20-05-2020 4:24pm

TheBoyConor wrote: »

Ah yes. Fair play to you. I'd say it is mega hours n all though at the MNC.

Feast or a famine to be honest. There’s big pushes every so often which require 16 hour days, but on quiet weeks, you can basically have free days. The entire philosophy is that they don’t really care what you do, as long as the job is done. If it’s done in half a week, the rest of the weeks yours.

yabadabado · 20-05-2020 4:35pm

Muscles Schultz wrote: »

Big mistake if you’re not maxing out AVCs

I've seen this on threads before but very little info available on AVCs. I had a meeting arranged with a advisor a few weeks back but that was cancelled. Hopefully get it sorted when ever we are back from lockdown.

Would love to hear about any info or ideas you have on AVCs if you have the time or inclination .

Manion · 20-05-2020 4:39pm

Muscles Schultz wrote: »

Big mistake if you’re not maxing out AVCs

Why do you say that? I've had a pension plan for the last ten years and christ it's a depressing read. More then a few times I've opened it up an been net down.

Padre_Pio · 20-05-2020 4:43pm

Manion wrote: »

Why do you say that? I've had a pension plan for the last ten years and christ it's a depressing read. More then a few times I've opened it up an been net down.

Ya, but you're still up money.
Your pension plan would have to fall by 40% for you to be better off taking the cash.

Im 30, have about 30k saved in bank and another 30k in shares. Looking to buy a house

I maxed out my AVCs probably have another 25k in pension with employers contribution, don't need the money and it'll mean less pressure when I'm older and looking at pension options.

ninebeanrows · 20-05-2020 4:49pm

This thread makes me sad. I'll leave now and be sure never to come back.

krissovo · 20-05-2020 4:49pm

Manion wrote: »

Why do you say that? I've had a pension plan for the last ten years and christ it's a depressing read. More then a few times I've opened it up an been net down.

If its net down after a booming stock market you are in the wrong fund. With pensions you manage the risk depending on when you need it. It will take a hit now with the current climate if you are in a high risk fund but it will recover just like after the last recession. If you are close to claiming them you move to lower risk lower yield pools.

greensausage · 20-05-2020 4:51pm

35 and 8k in savings but have nearly zero borrowings just a couple of hundred on a credit card so it could be worse

Warbeastrior · 20-05-2020 4:52pm

FHFM50 wrote:

F**king hell these kind of threads depress me so much.

Only if ya believe everyone.

Baby01032012 · 20-05-2020 4:55pm

44 and a couple of €m

Warbeastrior · 20-05-2020 4:57pm

I'm 39 and I've four of the six Infinity Stones.

Neil3030 · 20-05-2020 5:13pm

Forget families and mortgages; my biggest regret, and I feel the reason Irish people struggle so much to save: nights out.

Work out a rough estimate of how much nights out cost you per week.

Multiply this number by 1600.

That's a conservative estimate (assuming an average 5% market return) of the opportunity cost of your nights out over a 20 year period.

In other words, the money you would have in your account right now if you had instead put that X per week into a balanced investment fund returning 5% per year.

Example:

Average weekly cost of night outs: €100
100*1600 = €160k

Do the math if you don't believe me:
Current principle: 0
Annual addition: 5200
Years to grow: 20
Interest rate: 5%

Future value: €166k

Scariest thing is, in Ireland, 100 quid a week on nights out would be a fairly conservative estimate.... especially in Dublin...

0gac3yjefb5sv7 · 20-05-2020 5:16pm

Neil3030 wrote: »

Forget families and mortgages; my biggest regret, and I feel the reason Irish people struggle so much to save: nights out.

Work out a rough estimate of how much nights out cost you per week.

Multiply this number by 1600.

That's a conservative estimate (assuming an average 5% market return) of the opportunity cost of your nights out over a 20 year period.

In other words, the money you would have in your account right now if you had instead put that X per week into a balanced investment fund returning 5% per year.

Example:

Average weekly cost of night outs: €100
100*1600 = €160k

Do the math if you don't believe me:
Current principle: 0
Annual addition: 5200
Years to grow: 20
Interest rate: 5%

Future value: €166k

Scariest thing is, in Ireland, 100 quid a week on nights out would be a fairly conservative estimate.... especially in Dublin...

Interesting but more likely 0.000001pc interest unless you are dealing in equities which is not guaranteed 5pc a year.

Neil3030 · 20-05-2020 5:20pm

MattS1 wrote: »

Interesting but more likely 0.000001pc interest unless you are dealing in equities which is not guaranteed 5pc a year.

Yeah you're right, it's closer to 6%, but I went with a conservative estimate

Geuze · 20-05-2020 5:27pm

Neil3030 wrote: »

Average weekly cost of night outs: €100
100*1600 = €160k

Scariest thing is, in Ireland, 100 quid a week on nights out would be a fairly conservative estimate.... especially in Dublin...

When I go out in Dublin, I spend maybe:

Tram = 2.00 + 2.00
Beer = 30 approx
Total = 35, maybe 40 max

When I go out where I live, I spend 22 on beer.

Neil3030 · 20-05-2020 5:40pm

Geuze wrote: »

When I go out in Dublin, I spend maybe:

Tram = 2.00 + 2.00
Beer = 30 approx
Total = 35, maybe 40 max

When I go out where I live, I spend 22 on beer.

You have far more sensible spending habits than I...

So if the night out starts in the local, that'd be maybe 2 drinks: ~€10
Last bus into town, or taxi if we missed it: €2-€7 (sharing the taxi if applicable)
Box of cigarettes: €5-€10
Nightclub entry: €5-€10
Drinks in the nightclub: Say 4 drinks at... maybe 5-8 each: ~€25
Kebab after: €10
Taxi home: €10-€20 depending on whether the group dispersed

So that's a fairly tame night out (no late bar crawl before nightclub, no trip to the casino afterward, total of 6 drinks, not getting stung on an unreturned round, etc):

€80

Hogzy · 20-05-2020 5:41pm

Neil3030 wrote: »

Forget families and mortgages; my biggest regret, and I feel the reason Irish people struggle so much to save: nights out.

Work out a rough estimate of how much nights out cost you per week.

Multiply this number by 1600.

That's a conservative estimate (assuming an average 5% market return) of the opportunity cost of your nights out over a 20 year period.

In other words, the money you would have in your account right now if you had instead put that X per week into a balanced investment fund returning 5% per year.

Example:

Average weekly cost of night outs: €100
100*1600 = €160k

Do the math if you don't believe me:
Current principle: 0
Annual addition: 5200
Years to grow: 20
Interest rate: 5%

Future value: €166k

Scariest thing is, in Ireland, 100 quid a week on nights out would be a fairly conservative estimate.... especially in Dublin...

I get what youre saying but there is value in having a healthy social life and being able to blow off some steam. Im not saying one needs to spend 100eur per week on nights out to maintain a healthy social life though, to each their own. Given all that is going on in the world these days I can definetly say I miss meeting people for a casual few pints here and there or even going for a meal out or something, I have plenty of money saved from the last few months of lockdown but the lack of socialising has taken its toll elsewhere.

Neil3030 · 20-05-2020 5:43pm

Hogzy wrote: »

I get what youre saying but there is value in having a healthy social life and being able to blow off some steam. Im not saying one needs to spend 100eur per week on nights out to maintain a healthy social life though, to each their own.

Oh absolutely, I completely agree with you.

But it's a nice baseline to gauge the benefit of at least scaling back.

Say you get the €100 down to €80 per week, well, in 20 years that could mean €30k saved, etc.

Hogzy · 20-05-2020 5:46pm

Neil3030 wrote: »

Oh absolutely, I completely agree with you.

But it's a nice baseline to gauge the benefit of at least scaling back.

Say you get the €100 down to €80 per week, well, in 20 years that could mean €30k saved, etc.

In my eyes all this will come when I have kids and even a whiff of a pint on a Friday night will be but a distant memory!

Neil3030 · 20-05-2020 5:47pm

Hogzy wrote: »

In my eyes all this will come when I have kids and even a whiff of a pint on a Friday night will be but a distant memory!

You'll be getting a whiff of something else, several times a day

Wii776 · 20-05-2020 5:50pm

These threads depress me. I'm 44, partnered and with kids. Renting, no savings, and no prospect of ever owning our own home. Partner works in precarious gig economy and I have small business. Both work hard, and have no real frivolous spending. Takeaway once a week. One foreign holiday in last 10 years. Reading about 20 somethings with 5 figure savings is depressing.
We would be better off on the dole and a council house.

20-05-2020 5:56pm

Muscles Schultz wrote: »

Big mistake if you’re not maxing out AVCs

I disagree if he is saving towards a goal.

I changed jobs last year, I had a compulsory pension in my previous job but would have to setup my own private one in my new job. I have decided against starting any pension for now as I want to maximise my monthly income so I can save more towards building my house and have a smaller mortgage. At this stage in my life it’s more important to have the money now.

I’m not saying a pension isn’t important and I will be starting one in the next year or so but if I were to start one now at the level I will need to my contributions would wreck my savings.

Cobalt17 · 20-05-2020 5:57pm

Wii776 wrote: »

These threads depress me. I'm 44, partnered and with kids. Renting, no savings, and no prospect of ever owning our own home. Partner works in precarious gig economy and I have small business. Both work hard, and have no real frivolous spending. Takeaway once a week. One foreign holiday in last 10 years. Reading about 20 somethings with 5 figure savings is depressing.
We would be better off on the dole and a council house.

I feel for you man. There’s an omnipotent power that ensures that no matter what, those that have never worked should be guaranteed a certain standard of living, whereas people like you work your arse to be ever indebted, whilst paying for Jancinta and Decos children. You my friend, have your pride and your standards, which is something your children will benefit greatly from.

Cody montana · 20-05-2020 6:01pm

37 and about 24 grand.

I’ve expensive tastes.

Mister Vain · 20-05-2020 6:03pm

€25000 at age 36. I've spent over €20000 on travel. I don't really drink though and lived at home til I was 32.

The Mighty Quinn · 20-05-2020 6:06pm

I feel I might be closer to the average person, but maybe I'm trying to console myself.

34yrs old
7K savings
32 years left on a mortgage
Married with a child
25K in pension

--
300 owed on credit card
4,500 outstanding on a bank loan
1,000 owed on finance for furniture bought when we bought the house

Not great. Not great!

Manion · 20-05-2020 6:11pm

Padre_Pio wrote: »

Ya, but you're still up money.
Your pension plan would have to fall by 40% for you to be better off taking the cash.

Ok, so the lump sum is tax free but the annuity is not. You'll be paying 20% on that on the flip side. Add in inflation and fees and potential risk of a government mash and grab of the capital (like they did in 2008) and you're chipping away at that % a lot. Considering you're putting money away for 40+ years. I've not been in a rush to top up my pension contribution. The company I work for offers a share matching scheme on a 24 month cycle where I'm up 25% roughly after tax.

Padre_Pio · 20-05-2020 6:29pm

Manion wrote: »

Ok, so the lump sum is tax free but the annuity is not. You'll be paying 20% on that on the flip side. Add in inflation and fees and potential risk of a government mash and grab of the capital (like they did in 2008) and you're chipping away at that % a lot. Considering you're putting money away for 40+ years. I've not been in a rush to top up my pension contribution. The company I work for offers a share matching scheme on a 24 month cycle where I'm up 25% roughly after tax.

Not really. Your pension should grow and outpace inflation. Fees are only 1 or 2%.

You annuity is taxable, but you still get tax credits same as ever. I'd prefer to pay 20% on a portion of my pension and reduce my 40% tax bill now.

The mash and grab was a blip on most peoples pension fund and it's hugely overblown by people who argue against pensions, the same way pension advocates talk about the public pension time bomb.

If your employer matches your contribution, you're refusing free money by not maximizing this benefit.

Manion · 20-05-2020 6:35pm

As said, I've a contributory pension. I put in 5% and my employer puts in 10% which is very good. AVCs are not matched however and I'm not convinced dumping most of my disposable income into a pension fund is the right decision. Live life and all that.

Former Great · 20-05-2020 6:36pm

35 , 250k in cash . no property

Padre_Pio · 20-05-2020 6:41pm

Manion wrote: »

As said, I've a contributory pension. I put in 5% and my employer puts in 10% which is very good. AVCs are not matched however and I'm not convinced dumping most of my disposable income into a pension fund is the right decision. Live life and all that.

Oh ya, if you need the money then scale back.
My advice is for people who don't need the money, or who are p*ssing money away. Pensions cost less than you think, and it's better to start today than any other time.

How much savings do you have and what age are you?

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