Our Budget Planner allows you to select from different items you know you will spend money on in your retirement. It should help you to see how much these things may end up costing and what sort of income you might need in retirement. We have based our figures on a number of assumptions, for an individual, which can be adjusted if required.
is the level of income after tax you will need to fund the lifestyle you have chosen. Talk to your financial adviser to work out the pre-tax income you require.
is the level of income after tax you will need to fund the lifestyle you have chosen. Talk to your financial adviser to work out the pre-tax income you require.
Now that you have seen what level of income you may need in retirement, check your pension plan documentation. Your pension benefit statement will show you the current value of your plan as well as a projection of your likely fund at retirement. If you are a member of an Irish Life Corporate Business pension plan, check the current value of your pension savings in Pension Planet Interactive www.pensionplanetinteractive.ie.
Budget Planner Tool assumptions
To see the assumptions we have made in calculating the costs in our Budget Planner Tool, click here assumptions.
Our Budget Planner allows you to select from the different items you know you will spend your money on in retirement. It should help you to see how much these things may end up costing and what sort of income you might need in retirement.
We have based our figures on a number of assumptions:
- All costs are included on an individual basis.
- We assume no mortgage costs and that you are the owner occupier of your property.
- “Cost of Living” is included as a default item so this will be automatically included for everyone.
- You can choose a number of other items based on the lifestyle choices you will make.
- “Other” is an extra category included to capture any extra costs which you may have in retirement that are not otherwise captured.
- You can adjust the cost on each item to suit your own needs if the cost we have assumed differs from your own experience.
- Cost assumptions we have included are based on quotes and estimates at May 2018.
- To make this Budget Planning tool more relevant to your personal circumstances, you can increase or decrease the values we have supplied as a default. In order to keep the range that you can increase / decrease values by as realistic as possible, we have set a lower and upper limit on the ranges you can select. The lower range is calculated as half of the default number we have supplied, whereas the higher end of the range is calculated as double the default number we have supplied. We do not suggest that you use these ranges as a guide to a higher or lower level of living standard. If you find that the upper range is not enough to capture your expected expenditure in retirement, we suggest that you use the “Other” category to capture any addition expenditure beyond the standard thresholds we have defined for each of the components in the tool.
Here are the assumptions we have made for each item:
Assumptions for default values in the Budget Planner Tool
Household
| Sub-Category | Assumption | Cost Assumed Per Item | Item Frequency Per Annum | Annual Cost |
|---|---|---|---|---|
| Cost of Living | ||||
| Electricity and Heating bills | Assumes cost based on 2018 average bills: Electricity: €750 each year, Gas: €1,100 each year | €1,850 | 1 | €1,850 |
| Phone and Broadband | Assumes cost per month of Broadband, Landline & Mobile deal: €35 per month for first 6 months, €40 per month thereafter: €450 per year | €450 | 1 | €450 |
| Home improvements and Maintenance | Assumes cost of €100 per month | €100 | 12 | €1200 |
| Grocery shopping | Assumers average weekly shop of €97 | €97 | 52 | €5,044 |
| Property tax | based on Valuation ban €300,000-€350,000, Local Property Tax 2018 full year charge | €585 | 1 | €585 |
| Waste/Bin Charges | Based on quote for Pay by Weight Annual Fixed Charge, €17.50 per month, €210.00 pre year | €210 | 1 | €210 |
| Friends and Family | ||||
| Support for Children and Grandchildren | Assumes €100 per month | €100 | 12 | €1,200 |
| Birthdays/gifts for friends and family | Assumes €50 per month | €50 | 12 | €600 |
| Motor costs | ||||
| Operating costs | Based on AA Motoring costs 2018 for Band A vehicle, for €16,000km | €10,672 | 1 | €10,672 |
| New Car every 5 years | Based on AA Motoring costs 2018 for Band A vehicle: New car every 5 years: €13,000 > per year rata €2,600 | €2,600 | 1 | €2,600 |
| Total Assumed Annual Cost of Living: | €24,411 | |||
Health
| Sub-Category | Assumption | Cost Assumed Per Item | Item Frequency Per Annum | Annual Cost |
|---|---|---|---|---|
| Medical Insurance | Based on health insurance quote for 1 adult over age 25 | €895 | 1 | €895 |
| General Medical Expenses | Doctor / Dentist Visits | €60 | 12 | €720 |
| Medicine / Prescriptions | €40 | 12 | €480 | |
| Glasses | €35 | 1 | €35 | |
| Total Assumed Annual Health Costs: | €2,130 | |||
Leisure
| Sub-Category | Assumption | Cost Assumed Per Item | Item Frequency Per Annum | Annual Cost |
|---|---|---|---|---|
| Yearly 2 Week Holiday | Holiday | €2,166 | 1 | €2,166 |
| Entertainment | Books | €12 | 12 | €120 |
| Cinema | €15 | 6 | €90 | |
| Theatre | €30 | 4 | €120 | |
| Concerts | €40 | 4 | €160 | |
| Dining Out | €50 | 24 | €2,400 | |
| Hobbies | Golf / Club membership | €1,000 | 1 | €1,000 |
| Hair / Clothes / Shopping | Gents / Ladies Haircut | €37 | 12 | €444 |
| Clothes / Personal Shopping | €150 | 12 | €1,800 | |
| Total Assumed Annual Leisure Costs: | €8,300 | |||
