Irish Pension Information


How much do you need in retirement? It’s a good question. The answer is different for each of us. First, we need to look at what our outgoings will be at the time and then we can look at the lifestyle we would like.

How Much Do You Need in Retirement? – The Quick Calculation

Many advisors will recommend you have an income in retirement of 50% of your weekly earnings preretirement. So if you earn a €1,000 a week before you retire then you should have an income of €500 a week in retirement.

This is a quick and easy calculation. It does give you a figure quickly but if you have time then a little more planning will benefit you in the long run.

The Right Way to Calculate the Retirement Income You Need

The old saying fail to prepare then prepare to fail comes to mind. A little planning a long way when it comes to your pension. So grab a pen and paper and lets make a start on planning your pension.

Step 1 – Expenses

List all of your current expenses. (I go through my banking app on my phone so I don’t forget anything.) Then remove any which you will no longer pay once you retire. For example you may have paid off your mortgage.

If you have paid off your mortgage you won’t need to pay the mortgage or mortgage protection either. These are just two bills you can remove but there are many more. Transportation to and from work, your lunch etc.

Step 2 – Lifestyle (Disposable Income)

Your aim when saving for your pension should be to maintain your existing lifestyle. If you go away three times a year now, you won’t want that to change in retirement. Maybe you love to golf or perhaps you look forward to a few pints on a Friday evening in your local.

Whatever it is that you enjoy doing now, you will want to be able to keep doing it in retirement. Lifestyle expenses should be taken into account. Figure out how much you would need weekly to maintain your existing lifestyle in retirement.

After calculating your expenses and the disposable income you need for retirement you should have a rough idea of the amount you will need each week.

Step 3 – Calculate Your State Pension

You should now know how much you need weekly to retire. The next step is making it happen.

First you need to check your entitlement to a state pension. Most will be entitled to a state pension but some may not be entitled to the full rate and this is something you should check.

The maximum state pension at the moment is approx. €250.00 and is only payable from age 66. If you wish to retire before this age you need to look at our


You have run the numbers and decided in Step 1 and 2 that you need an income of €400.00 per week in retirement. You are entitled to a full state pension which at the moment is €250.00 per week.

Armed with this information you now know you have a €150.00 a week short fall to make up.

Step 4 – Calculate your Ideal Pension Pot

The amount you need to have in your pension pot will change depending on your retirement age.

The calculator assumes you will be retiring at age 66 or above. This means you will be receiving your state pension so will only need to top it up each week in retirement.

If you plan to retire early you will need to have enough set aside to fund your lifestyle in full before your state pension kicks in when you reach 66. If you are thinking of retiring early you need to look at our early retirement section. It goes without saying the earlier you retire the more you need in your pension pot.

If you are planning to retire at age 66 or after you can use our Normal Retirement Income Calculator here.

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