Q I used to dream of the day when I could enjoy a life of little to no responsibility in retirement, but the closer I get to retirement age the more nervous I get. I’ve been saving for retirement since the day I started working, but each day seems to bring another layer of doom as inflation soars and the cost of living soars. I worry that I don’t have enough to retire. How do I know how much I need and how can I feel more secure?
A According to Standard Life Sales Director Alan McCarthy, a lack of confidence shouldn’t derail your retirement dream. Since the beginning of your working life you have consistently saved for your old-age provision.
Assuming you were in your early 20s, you’re about a decade older than the national average age for starting private pension schemes.
You don’t mention contribution rates or monies you’re invested in, but by consistently saving into an investment vehicle like an annuity, you’ve given your money the best chance of growing tax-free. This is a fantastic financial foundation that you should feel confident about, Mr McCarthy said. You have a vision for your retirement and this makes understanding your financial needs that much clearer.
More than half of people in Ireland think retirement is just something that happens and will think about it when it does. Retirement shouldn’t be something people fear. It is a time for you to open your life to the possibilities you have dreamed of. Mr McCarthy said that’s called planning for your second life with Standard Life. It’s about examining aspects of life that may be overlooked when planning for retirement.
For example, what part of your life gives you meaning right now? Do you have a partner, family or friends who are also retiring? Meeting your financial needs for a comfortable retirement is crucial, but by planning holistically, you can be assured that it will be a retirement to look forward to.
Q I have been working globally as a digital nomad for five years. I am ordinarily resident in Ireland but was not essentially a tax resident except for a 7 month stay in 2020 during the pandemic. I will be returning to Ireland in July to start a new full-time position with a multinational company. Can you clarify my tax situation?
A According to Taxback.com Managing Director Joanna Murphy, if an Irish individual is regarded as resident for a tax year, they will be subject to tax on their worldwide income.
A person will be resident for a tax year if he or she has spent 183 days or more in a calendar year or 280 days or more in two consecutive tax years in Ireland.
If you traveled to the State between 24th March and 5th May 2020 and your intended departure from Ireland was prevented due to Covid-19 then the period is from the day after the originally intended date of departure to 18th May 2020 or the actual departure date, if earlier, may be disregarded when determining his residency status (subject to a maximum of 30 days allowed, except where an individual has been diagnosed with Covid-19).
An Irish individual who is regarded as a non-resident but ordinarily resident is liable to tax on his or her worldwide income other than income from an employment, trade or occupation no part of which is exercised in Ireland and other foreign income that is less than €3,810, said Ms. Murphy.
Q I have VHI PMI 3613. Am I covered for a private room in private hospitals as I have underlying conditions and am concerned about sharing it with other patients?
A According to TotalHealthCover.ie’s Dermot Goode, your existing insurance coverage is an excellent business system. However, it only covers up to semi-private placement in standard private hospitals.
Since private room accommodation is never guaranteed, you could simply pay the extra cost on top of the insurer’s payments to the hospital if a private room were available. Alternatively, consider upgrading to VHI PMI 4810 (€1,581 per adult) or Company Plan Extra Level 1 (€1,760 per adult).
Both schemes cover private accommodation with a deductible of €50 for each night you occupy a private room in a private hospital, Mr Goode said. Also note the top-up rule, which means your coverage may remain limited to semi-private for the next two years for any existing medical conditions.
https://www.independent.ie/business/personal-finance/your-personal-finance-questions-how-do-i-know-i-have-saved-enough-for-a-decent-retirement-41908806.html Your Personal Financial Questions – How do I know I’ve saved enough for a decent retirement?