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In our last blog, we celebrated Fran's incredible achievement of amassing a €2 million pension pot through decades of disciplined saving and investing.

Some who read it were inspired, some were envious, and others said "I don't bloody need €2m pension pot"!

Today, we're asking a different question entirely: Do I actually need a €2 million pension pot to retire comfortably?

And you'll see why I suggest the following are appropriate pension pots to fund a 'comfortable' retirement lifestyle;

• c€500k if you plan to retire in your mid 60's
• c€1m if you would like to retire in your mid 50's

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These may seem like a luxury questions, but are the most important aspects in our retirement planning in Ireland.

Because here's the truth: knowing how much you need to spend in retirement is key to knowing how much you need to save for your pension pot Ireland.

Meet Fran (Again): The Reality Behind the Success

Fran is 55, married, lives in Dublin, and has diligently saved €2+ million in pension wealth.

Fran has been maxing out pension contributions for years, taking advantage of every tax break available, and investing wisely.

On paper, Fran looks like the poster child for retirement success. But Fran is nervous!

Will €2 million actually be enough?

What if I live to 95?

What if inflation goes crazy?

What if there's another financial crisis?

Should I keep working just to be safe?"

Sound familiar?

This anxiety isn't uncommon among successful savers.

I call it "Enough Syndrome"!

Loosely defined as the inability to recognise when you've actually achieved financial security and independence.

It's alive and well within many, particularly in times of hightened uncertainty and volatility.

The Irish Retirement Landscape: Independent Financial Advisor Ireland Insights

Let's start with the facts that anchor our Irish retirement planning analysis:

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Pension Planning Ireland: The "Comfortable" Benchmark

Recent research by Ireland's Pensions Council found that:

• A couple needs €43,200 annually for a "comfortable" retirement

• This allows for holidays, dining out, cultural activities, and some spontaneity with money

The €2M Reality Check: What Can Fran Actually Spend?

The 4% Rule

Using the widely-accepted 4% withdrawal rate on a €2m pension pot (listen to our recent podcast with Bill Bengen, creator of 4% Rule here)...

• €2m × 4% = €80,000 annually from private pension (ARF) income

Plus €28,000 state pensions for him and partner = c€108,000 total gross pre-tax annual income

This puts them in an extraordinarily comfortable position, with more than double the Pension Council "comfortable" benchmark.

But benchmarks are highly individual, as is personal finance - everyone's preferences, needs and goals will differ.

Realistic Scenario:

The Flexible Approach

But Fran doesn't need to stick rigidly to 4%. Here's why.

Years 55-66 (Pre-State Pension):

• To fund 'just' the comfortable benchmark, Fran needs c€43,200 from the pension pot

• That's just c2% withdrawal rate. Even starting draw-down at that early age is conservative and highly sustainable

Years 66+ (With State Pension):

• To subsidise State Pensions, Fran would only need €15,200 annually from the pension pot

• Assumed pension pot value after pre-pension years was €1.9m

• Required withdrawal rate: less than 1% (but will be obliged to draw 4% to 70 and 5% from 71 years of age onwards)

The Surprising Truth: Fran Has "Too Much"?!

Let's be honest about what this means. Assuming Fran lives to 90.

The Numbers Don't Lie

• Total retirement years: 35 years (55-90)

• Total needed from private pension: €1.1m (made up of pre-state pension (12 years): €640k, and post-state pension (24 years): €450k, allowing for some Income Tax and inflation adjustment.

• Fran's pension pot: €2,000,000

• "Excess" wealth: c€1m!

This excess could fund:

• Luxury holidays every year

• A significantly higher lifestyle than "comfortable"

• Substantial gifts to family and loved-ones

• Charitable giving

• Emergency healthcare costs

• Long-term care if needed

And assuming they don't use it for the above purposes, the reality is that they will accumulate non-pension assets that will become part of their estate on death, and or incorporated into a business or Family Partnership which may be used for estate planning purposes. And anything that may be left in the ARF will of course pass into their estate and go to their beneficiaries - so it's certainly not 'lost'!

Ireland Pension Pot Calculator: What This Means for "Most" Pension Savers

Fran's situation hints at several crucial lessons about pension advice Ireland:

You May Need Less Than You Think!

If you really need the income that is suggested for 'only' a comfortable retirement, of say €1.1m for a comfortable 35-year retirement (55 to 90), what does this mean for your planning?

For a couple with similar goals:

• Combined comfortable retirement needs from 55 to 90: €43,200 annually

• Less assumed combined state pensions from 66 to 90: c€30k

• Total private pension needed: c€1m for a 35-year 'comfortable' lifestyle!

The Power of the State Pension

Ireland's state pension system is actually quite generous compared to private provision.

For many people planning retirement income Ireland, the state pension could cover 50-60% of comfortable retirement income.

Your private pension just needs to fill the gap in that scenario.

Starting Point for Most Couples

Based on our analysis, most Irish couples who plan to retire around mid-60's need a combined private pension pot of:

• €300,000 - €500,000 for comfortable retirement

Or €800,000 - €1,200,000 for luxury retirement

If you would like to retire at mid-50's and have a comfortable retirement, the numbers suggest a pension pot of c€1m for income generation may be required.

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The Real Retirement Planning Questions You Should Be Asking & Answering

Instead of "How much do I need to save?" try asking:

1. "What kind of retirement do I actually want?"  

Basic comfort or luxury lifestyle?  

• Frequent travel or staying local?  

• Supporting family or focusing on yourselves?

2. "What will my expenses actually be?"  

• Mortgage paid off by retirement?  

• Healthcare costs considered?  

• Inflation factored in?

3. "How can I optimise what I'm already saving?"  

• Are you maximising tax relief?  

• Is your investment strategy appropriate?  

• Should you consider additional voluntary contributions (AVCs)?

Fran's Decision: The Human Side of Numbers

So what did Fran decide?

After working through these calculations, Fran chose to retire at 55 instead of continuing to work until 60 or beyond.

The numbers showed that continuing to save was unnecessary for Fran's goals.

Instead, Fran now volunteers with a local charity, travels more, gifts more, and enjoys a stress-free retirement knowing that €2 million was indeed more than enough.

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The Takeaways for Your Planning

If You're Behind on Savings

Fran's story shows that you might not need as much as you had been aiming for. Focus on:

• Maximising your state pension entitlements and PRSI contributions

• Building enough of a private personal pension to cover the gap

• Understanding your actual spending needs and plans in retirement

If You're a Good Saver

Consider whether you're saving too much. Could you:

• Reduce pension contributions and enjoy more of your money now?

• Take career breaks or pursue career choices you've been putting-off?

• Support family members with their financial goals?

Or, retire earlier than planned, and pursue fun projects!?

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If You're Somewhere in Between

Use Fran's framework:

1. Calculate your state pension entitlement

2. Define your retirement lifestyle goals

3. Work out the annual income shortfall

4. Multiply by your expected retirement years (factoring-in in some inflation and tax)

5. That's your target, it's possibly or probably less than you think!?

The Bottom Line

Fran's €2 million pension pot could fund the benchmark 'comfortable' retirement two or three times over.

While this level of wealth provides tremendous peace of mind and flexibility, it also highlights that many of us are aiming for targets that may be unnecessarily high.

The real goal isn't to amass the largest possible pension pot (is it!?). I believe the real goal is to have enough to live the retirement we actually want.

For most Irish couples, a combined pension pot of €500,000 to €800,000, alongside full state pension entitlements, will provide a comfortable retirement from mid-60's.

The key is understanding what "comfortable" means to you and planning accordingly.

Next Step

Understanding these numbers is just the beginning.

Every person's situation is unique; your health, family circumstances, existing assets, career trajectory, and personal dreams all influence what "enough" means for your Ireland retirement planning.

The most important step you can take today is to start. Whether that's increasing your existing pension contributions, starting a PRSA, or simply tracking your current expenses to understand your real retirement needs through a proper Irish pension calculator assessment.

And if you're already a good saver like Fran? Maybe it's time to ask whether you're saving too much, and/or and missing out on enjoying some of your time, freedom or money today!

Ready to Create Your Personal Irish Pension Calculator Assessment?

Don't let uncertainty about the future prevent you from taking action today, or from recognising if you're already doing enough.

Run your own numbers, and/or hire a decent financial planner to help you develop a clear startegy to get you where you want to get to.

At Informed Decisions Financial Planning, we specialise in creating transparent, realistic retirement plans for Irish individuals and couples seeking independent financial advice Ireland. We focus our support to people who are at the point of retirement, and have large and expensive decisions to figure-out. However, we can't help everyone, so please do seek guidance and a plan from someone who is qualified and fee-only or fee-based to help you.

Sometimes, like with Fran, the best pension advice Ireland we can give is that you're already doing brilliantly and can relax a little.

I hope this helps.

Paddy Delaney QFA RPA APA

This blog is for educational purposes. All figures are estimates based on current rates and assumptions. Individual circumstances vary, and professional advice should be sought for personal financial planning decisions.

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