Retiring
Planning your finances for retirement
If you’re nearing retirement or have recently retired, adjusting to changes in your finances can take time. This section covers understanding and comparing pension drawdown options, managing your lump sum and making the most of savings, insurance and budgeting. You will also find information on benefits and ways to protect your money.
What are the different types of pension schemes?
A pension (sometimes called a pension scheme) is a long-term savings plan to help you build up a pension fund for when you retire. Many pensions have better tax incentives compared to other types of savings. These incentives are to encourage you to start saving into a pension as early as possible for your retirement.
There are many different types of pensions in addition to the State Pension, which are intended to provide you with an income when you retire. Some are run by your employer, called Occupational Pensions, others can be set up by you which are called Private or Personal Pensions or, if you are working in the public service you will have a Public Service Pension.
Auto-enrolment
My Future Fund is Ireland's Auto-enrolment Retirement Savings Scheme. It started on 1 January 2026. It is designed for workers who are not already paying into a pension through their payroll. If you are aged 23 to 60 and earn €20,000 or more a year, you will be automatically enrolled.
You, your employer, and the State will all pay into your pension fund. After six months, you can choose to leave the scheme and get your own contributions back. If you already pay into a qualifying pension through your payroll, you will not be enrolled in My Future Fund for that job.
For comprehensive information on pensions, please visit the CCPC guide to pensions.
What happens to your pension savings when you retire?
If you have an Occupational (defined contribution) or Private Pension, there are different ways to use your pension savings when you draw them down. The option (financial product) you choose will depend on your needs and circumstances.
Regardless of your drawdown options, you will be able to take some of your money as a tax-free lump sum. How much depends on the type of pension you have been saving into.
Your drawdown options (post-retirement financial products)
For Occupational Defined Contribution Pensions and Private Pensions only.
Annuities
Annuities give you a fixed, guaranteed income for life from your pension savings, but the amount can’t be changed later and usually ends when you die.
Approved Retirement Funds (ARFs)
Approved Retirement Funds let you keep your pension invested and draw down an income, but the income is taxable and not guaranteed.
For more information, go to the CCPC personal pensions page and consider seeking financial advice to help you make decisions on pension products.
Ways to access your pension at retirement
Defined Contribution Occupational Pensions
You can take up to 25% of your fund tax-free (max €200,000). The rest can be used to:
- Buy an annuity
- A tax-free lump sum
- Invest in an ARF
Defined Benefit Occupational Pension
You can usually take:
- A tax-free lump sum
- A pension for life (subject to income tax)
It often makes sense to take the largest tax‑free lump sum you can, but it may reduce your future pension income, so weigh the impact before choosing.
AVCs or PRSA linked to your job
If you made Additional Voluntary Contributions (AVCs) or have a Personal Retirement Savings Account (PRSA), you may:
- Take part or all as a tax-free lump sum (within limits)
- Use the balance for an annuity, ARF or taxable lump sum
What age can you access your pension?
| Type of plan | Earliest age you can take benefits |
| Personal Pension | Usually payable from age 60. You can continue working and contributing up to age 75, subject to Revenue rules. |
| PRSA | Usually payable from age 60. In limited cases, an employer‑funded PRSA may be accessed from age 50 if you are retiring from that employment. Benefits can be deferred up to age 75, subject to Revenue rules. |
| Occupational Pension (including AVCs) | Usually payable from age 60 or 65, depending on the scheme. Some schemes allow early retirement from age 50, but this is subject to scheme rules and employer or trustee consent. |
Note: Retiring early usually means a lower weekly, monthly or yearly income.
If you have paid Pay Related Social Insurance (PRSI), you may be entitled to the State Pension from age 66. Your entitlement depends on your PRSI contribution record. Check with the Department of Social Protection to confirm.
What are your saving and investment options when retiring?
At retirement, you can take a lump sum from your pension. The first €200,000 you receive is tax-free across all your pensions combined (this is a lifetime limit). Any amount between €200,001 and €500,000 is taxed at 20%. Any lump sum over €500,000 is taxed through PAYE at the higher, marginal tax rate (usually 40%).
Lump sums from pensions earned abroad are taxed the same way. If you receive a lump sum from a foreign pension, you must include it in your Income Tax Return (Form 11 or Form 12) and pay any tax due when filing your annual tax return. For more, go to Revenue.
Consider contacting a financial advisor if you think you need help making a decision. We have lots of information on saving and investing, including comparing options, understanding risk and information on how deposits and investments are protected.
Shop around for insurance
As an older customer, you may be able to get additional benefits from insurance companies – for example, rewards for safe driving, savings for low mileage, breakdown assistance or discounts for having extra home security such as an alarm. So it may be a good time to review your insurance. Our home insurance and motor insurance shopping around checklists will help you organise quotes and compare prices and benefits.
Releasing equity in your home
Equity release lets you take money out of the value of your home while still living in it. You get a lump sum or regular payments, and the money is repaid later – usually when the house is sold. Learn more in our section on equity release.
How do you manage daily expenses?
Retirement may mean less money to spend, so reviewing your spending can help. Our budgeting section offers practical tips to help you plan your day‑to‑day costs and manage your money.
Keep an eye out for special offers for retirees
Many organisations give benefits for people in retirement.
These may include:
- Free travel if you are aged 66 or over and are getting a State pension, your Public Services Card (PSC) will be issued showing that you have Free Travel automatically.
- Free or low cost banking
- Discounts from shops and retailers
- Deal days for senior citizens
- Loyalty and reward schemes
- Fuel allowance
Household Benefits Package
The Household Benefits Package helps with the cost of running your home by giving you €35 per month towards electricity or gas and a free TV licence. It is available to people aged 70 and over, and to some people under 70 who receive certain social welfare payments. Only one package can be claimed per household, and you must live in Ireland full‑time. Learn more or apply on Gov.ie.
