Planning your Retirement Income

Need Pension advice

Have you considered what your income will be in retirement? For many people retirement income will come for different sources. Here we take a look at the main ones.

State Pension entitlements

The state pension (non-contributory) in Ireland which is set out below *has been designed to provide a basic standard of living. For some people this is the only source of income that they receive in retirement. If you are thinking about your retirement consider if you could get by with that level of income taking into account your current living costs; rent/mortgage, food, electricity, heat, etc.

State Pension (Contributory) Rate per week (maximum)

Personal rate, aged 66 and under 80* €248.30

Personal rate, aged 80+ €258.30

By the time you retire some things like your mortgage may no longer be an issue, but there are things that are likely to increase in our later years as such as medical bills.

*If you were born on or after 1 January 1955 the minimum qualifying State pension age will be 67. If you were born on or after 1 January 1961 the minimum qualifying State pension age will be 68.

Private Pension Provision or Pensions Provided through your Employment

It is estimated that only 56% of the working population has some pension provision (Source: Central Statistics Office Quarterly National Household Survey Quarter 3, 2018: Pension Coverage) While some provision is better than none, people may worry that they won’t have saved enough to provide an adequate income by the time they retire. Deciding what income you need in retirement depends on what kind of lifestyle you hope to have during your retirement. As a general rule, it is recommended that you aim to have an annual income at retirement of 66% of your final salary. This should provide you with a good standard of living when you retire.

Personal Savings and Investments

If you are lucky enough to have built up Savings and Investments during your working life, you can use this money to supplement your income in retirement, providing for a better standard of living than the State Pension alone might provide. With interest rates at such a low level, consider what is the best way of making your money work for you.

Continued Employment

Retirement means different things to different people with some seeing retirement as an opportunity to do different things while possibly earning money in the process. For others, retirement may not seem like a possibility at all with financial responsibilities continuing for them well past normal retirement ages.

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