In this week’s podcast, Paddy talks about what a €1 million pension can actually generate in retirement—and why the headline number doesn’t always match the reality of income.

• The tax-free lump sum explained
  You can take 25%, but only the first €200,000 is fully tax-free. The rest may be taxed, reducing what you actually receive.
• ARF income isn’t as high as you think
  A €750,000 ARF might generate around €30,000 per year—but after tax, that’s closer to €25,000 net.
• The State Pension makes a big difference
  Adding the State Pension can bring total income to roughly €45,000+, improving monthly income significantly.
• Annuities offer certainty—but at a cost
  They provide guaranteed income for life, but you give up control, flexibility, and access to your capital.
• You can take more—but it comes at a price
  Higher withdrawals from an ARF are possible, but they increase your tax bill and may reduce long-term sustainability.
• A mix of ARF and annuity may work best
  Combining both can give you a balance of guaranteed income and flexibility.
• Couples have a clear advantage
  With two State Pensions and wider tax bands, married couples can generate significantly higher net income.
• What matters isn’t the €1 million
  It’s the income it produces—and whether that income supports the life you want.

What’s realistic, what’s sustainable, and what €1 million actually means in retirement. Enjoy listening!

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