Retirement Planning Ireland

Turn your pensions and savings into a clear retirement plan

Retirement planning is about more than building a pension fund. It is about understanding when you can afford to retire, how much income you may need and how your pensions, savings and investments can support you throughout retirement.

At Dooley Insurance Group, we help individuals, company directors, business owners and families across Ireland prepare for retirement with greater clarity.

We review the assets and pension arrangements you already have, estimate your future income requirements and explain the retirement options available to you.

Whether retirement is several years away or you are preparing to access your pension now, our financial advisers can help you make informed decisions about the next stage of your life.

Arrange a Retirement Planning Consultation

What is retirement planning?

Retirement planning is the process of preparing financially for the point when your regular employment or business income stops.

A complete retirement plan considers:

• When you would like to retire
• The lifestyle you want in retirement
• Your expected living costs
• Existing pensions
• Savings and investments
• Property and other assets
• Outstanding mortgage or debt
• Potential State benefits
• Retirement lump sum options
• Ongoing retirement income
• Investment risk
• Tax considerations
• Financial provision for your spouse or family
• How long your retirement income may need to last

The purpose is to create a clear connection between the assets you are building today and the income you may need in the future.

When can I afford to retire?

The age at which you can afford to retire will depend on your financial position rather than one universal retirement age.

Before answering this question, we need to understand:

• The value of your pensions
• The age at which your pension benefits can be accessed
• Your savings and investments
• Your expected expenditure
• Whether you will continue working in some capacity
• Your mortgage and other financial commitments
• Any income from property or business assets
• Your eligibility for State benefits
• The level of income you want throughout retirement

Once this information has been gathered, we can assess whether your existing resources are likely to support your preferred retirement date.

If there is a shortfall, we can identify the areas that may need attention. This could include increasing pension contributions, adjusting the planned retirement date, reviewing investment risk or reconsidering the level of income required.

How much income will I need in retirement?

There is no standard amount that everyone needs for a comfortable retirement.

Your required income will depend on the life you expect to lead.

Some expenses may reduce when you stop working, while others may increase. You may spend less on commuting and mortgage repayments but more on travel, leisure, home improvements or healthcare.

A retirement income assessment should consider:

• Household bills
• Housing costs
• Food and everyday spending
• Transport
• Travel and holidays
• Healthcare
• Family support
• Hobbies and leisure
• Emergency expenses
• Inflation
• Long term care considerations

We help you separate essential expenditure from discretionary spending and build a more realistic estimate of the income you may require.

This can then be compared with the projected income from your pensions, savings, investments and other assets.

Retirement planning before you retire

The years immediately before retirement can be particularly important.

This is the period when you still have an opportunity to review contribution levels, assess pension performance, address potential income gaps and prepare for the decisions that arise when pension benefits are accessed.

A pre retirement review can help answer:

• Are my pensions on track?
• Should I increase my contributions?
• Is my investment risk still appropriate?
• Do I have pensions from previous employment?
• Should I consider pension consolidation?
• What retirement options may be available?
• Can I afford to retire at my preferred age?
• What happens to my pension when I retire?
• How will my spouse or family be protected?
• What information should I gather before retirement?

Ideally, retirement planning should begin several years before your intended retirement date. However, even if retirement is close, a structured review can still help you make better informed decisions.

Request a Pre Retirement Review

Understanding your retirement income

Most people will rely on more than one source of income in retirement.

Your retirement income may come from:

• An occupational pension
• A Personal Retirement Savings Account
• A personal pension
• A pension from previous employment
• An Approved Retirement Fund
• An annuity
• The State Pension
• Personal savings
• Investments
• Rental income
• Business assets
• Part time employment

The amount and timing of each income source may be different.

We bring these arrangements together to create a clearer view of your expected income and identify whether any periods may be underfunded.

This is particularly important where someone plans to retire before becoming eligible for other benefits or sources of income.

Reviewing pensions from previous jobs

If you have worked for several employers, you may have accumulated multiple pension arrangements.

Some people approach retirement without knowing exactly where every pension is held, what each arrangement is worth or when the benefits can be accessed.

As part of your retirement planning review, we can help assess:

• Pensions from previous employment
• Current workplace pensions
• Personal pensions
• PRSAs
• Personal Retirement Bonds
• Existing retirement benefits
• Policy guarantees
• Charges and investment funds
• Available retirement options

It may be possible to transfer or consolidate certain pension benefits. However, moving a pension is not always the right decision.

Existing guarantees, benefits, charges and policy conditions must be reviewed before any transfer is considered.

Retirement lump sum options

Depending on the type of pension arrangement and applicable rules, you may have the option to take part of your pension benefits as a retirement lump sum.

While receiving a lump sum can provide flexibility, the decision should be considered carefully.

Before taking a retirement lump sum, it is important to consider:

• How much you actually need
• How the money will be used
• Whether debt should be repaid
• The effect on your remaining retirement fund
• Your future income requirements
• Potential tax treatment
• Your emergency savings
• Your wider estate and family position

Taking a larger lump sum may leave less money available to provide income throughout retirement.

We help you understand the available options and how each could affect your longer term financial position.

Approved Retirement Funds

An Approved Retirement Fund, commonly known as an ARF, allows qualifying pension funds to remain invested after retirement while withdrawals are taken.

An ARF may provide flexibility over how retirement income is managed, but the value of the fund can rise or fall depending on investment performance, charges and withdrawals.

When considering an ARF, we assess:

• Your income requirements
• Your attitude to investment risk
• The amount being invested
• Expected withdrawals
• Other sources of retirement income
• Your investment timeframe
• The effect of charges
• The risk of exhausting the fund
• Provision for your spouse or beneficiaries

An ARF requires ongoing management and review. It should not be treated as a once off retirement decision.

Annuity options

An annuity is a retirement arrangement that uses pension funds to provide an income, generally for the remainder of your life.

The income available will depend on factors such as the value of the pension fund, your age, the annuity terms selected and market conditions at the time.

An annuity may provide greater certainty of income, but it can offer less flexibility than keeping retirement funds invested.

The suitability of an annuity will depend on your circumstances, income needs, health, family position and preference for certainty or flexibility.

We will explain the options that may be available and the differences between an annuity and an Approved Retirement Fund before you make a decision.

Investment planning during retirement

Reaching retirement does not always mean that all investment risk should be removed.

Some retirement funds may need to remain invested for many years. However, the level and type of risk that was appropriate during your working life may no longer suit your position after retirement.

Your retirement investment strategy should consider:

• The income you need to withdraw
• How long the fund may need to last
• Your capacity to absorb investment losses
• Inflation
• Market volatility
• Cash requirements
• Other guaranteed income
• Diversification
• Charges
• Your family and estate planning objectives

The aim is to balance access to income with the need to protect the sustainability of your retirement fund.

Retirement planning for company directors

For company directors and business owners, retirement planning is often closely connected to the future of the business.

You may expect to sell the company, transfer ownership to family members, remain involved in a reduced capacity or step away completely.

Your retirement plan may need to consider:

• Existing director pension arrangements
• Personal and employer pension contributions
• Business valuation
• Sale or succession plans
• Future involvement in the company
• Personal savings and investments
• Property assets
• Shareholder protection
• Key person protection
• Income requirements after leaving the business

Business wealth does not automatically become retirement income. A clear plan is needed to understand how and when value may be extracted and what happens if the expected business exit does not proceed as planned.

Retirement planning for self employed people

Self employed individuals are responsible for putting their own retirement arrangements in place.

When business income varies, pension planning can easily be postponed. This may result in a smaller retirement fund or greater reliance on the future sale of the business.

We help self employed clients review their personal pensions, PRSAs, savings, investments and expected business value.

The objective is to create a retirement plan that does not depend entirely on one asset or one future event.

Our retirement planning process

Understanding your position

We gather information on your pensions, savings, investments, income, debts, property and other relevant assets.

Defining your retirement

We discuss when you want to retire, the lifestyle you expect and the income you may require.

Reviewing your projected income

We assess the income that may be available from pensions and other sources and compare it with your expected expenditure.

Identifying potential gaps

If your expected income appears lower than your retirement target, we identify the areas that may require attention.

Explaining your retirement options

We explain the retirement arrangements that may be available, including the relevant benefits, risks, charges and tax considerations.

Ongoing retirement reviews

Your retirement plan should be reviewed as your circumstances, investment markets and income requirements change.

Why choose Dooley Insurance Group?

Dooley Insurance Group has supported individuals, families and Irish businesses since 1957.

Our financial services team provides advice across retirement planning, pensions, investments, income protection, life assurance and business protection.

This allows us to consider your retirement as part of your complete financial position.

Our financial services team includes Conor Swan, QFA, RPA and SIA, Director, and David Renwick, Senior Financial Consultant.

With offices in Naas, County Kildare and Edenderry, County Offaly, we provide retirement planning advice to clients locally and throughout Ireland.

Retirement planning questions

What is retirement planning?

Retirement planning is the process of estimating your future income needs and arranging pensions, savings, investments and other assets to support you when regular employment or business income stops.

When should I start planning for retirement?

Retirement planning should begin as early as possible. A detailed pre retirement review is particularly important during the years leading up to your intended retirement date.

Can I retire early in Ireland?

Early retirement may be possible depending on your pension arrangements, age, financial resources and scheme rules. Retiring earlier also means your assets may need to provide income for longer.

How much money do I need to retire?

The amount depends on your expected expenditure, housing costs, lifestyle, retirement age, available pensions and other sources of income.

What happens to my pension when I retire?

Depending on the type of pension and applicable rules, you may have several options for accessing benefits. These may include a retirement lump sum, an Approved Retirement Fund, an annuity or another permitted arrangement.

What is the difference between an ARF and an annuity?

An ARF keeps qualifying retirement funds invested and allows withdrawals, while an annuity generally exchanges pension funds for an income payable under agreed terms. Each option has different benefits and risks.

Should I take the maximum retirement lump sum?

Not automatically. Taking a larger lump sum may reduce the amount remaining to provide retirement income. The decision should reflect your immediate needs and longer term financial position.

How often should I review my retirement plan?

Your retirement plan should be reviewed regularly and whenever your income, expenditure, family circumstances, health or investment position changes.

Can I use several pensions to fund my retirement?

Yes. Many people have more than one pension. Each arrangement should be identified and reviewed so that its value, benefits and retirement options are understood.

Will my retirement income last for life?

That depends on the type of retirement arrangement, investment performance, withdrawal levels, charges, inflation and how long the funds need to last. Regular reviews can help monitor the sustainability of your retirement income.

Start planning your retirement

A good retirement plan should tell you more than the value of your pension.

It should help you understand when you may be able to retire, the income you could receive and the decisions that need to be made before your regular earnings stop.

Contact Dooley Insurance Group to arrange a retirement planning consultation.

Arrange Your Retirement Review

The information on this page is general and does not constitute personal financial, legal or tax advice. Pension and retirement rules, tax treatment and product availability may change. Recommendations can only be provided following an assessment of your individual circumstances and the products available through our agency appointments.

Dooley Insurances Ltd t/a Dooley Insurance & Mortgage Brokers and Dooley Insurance Group is regulated by the Central Bank of Ireland.