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Planning to 95: Life Expectancy, the Irish ARF and the Real Retirement Lever
August 24, 2026
How much tax will my children pay on my ARF when I die?
A child aged 21 or over pays income tax at a ring-fenced 30% on an ARF inheritance, with no CAT, regardless of fund size. A child under 21 pays no income tax but the benefit falls within CAT at 33% above the €400,000 Group A threshold.
Your Irish pension plan probably runs to age 95, but you'll likely live to around 83, and the gap changes your pot far less than you'd expect.
In this episode, Paddy digs into the retirement life expactancy in Ireland. He checks on the one age assumption buried in almost every Irish retirement plan, where the default of 95 comes from and what the most recent CSO life tables actually say about how long a 65-year-old really lives.
It's for you if you're approaching or already in retirement with a meaningful pension or ARF, and you've never been asked (or never questioned) the age your own plan is built to.
Using a fictional €1.2m ARF, this piece shows how Revenue's imputed distribution means the closing pot is almost identical whether you plan to 83 or 95 (around €1.25m versus €1.21m). The end age was never really the lever.
What is covered in this Episode:
- Where the default planning age of 95 comes from and the US research (Barron's, TIAA, Stanford) behind “oversaving and underliving”
- What the most recent Irish CSO life tables really say and why they're a floor, not a forecast
- How Revenue's imputed distribution (4%, 5%, 6%) shapes drawdown from an ARF
- Why a €1.2m ARF lands at almost the same value at 83 or 95 and what that means for your estate
- The real lever: what you do with the income you're forced to draw, including a scenario that leaves roughly €283,000 less to Revenue
📖 Blog: www.informeddecisions.ie/post/how-long-should-retirement-plan-last-ireland
📊 Want to check where you are? Try our free 5-minute Retirement Readiness Scorecard: https://www.informeddecisions.ie/pension-calculator
📅 Find out how we work: https://www.informeddecisions.ie/our-process
Can I give money to my children tax-free in Ireland?
Yes. The small gift exemption allows €3,000 per disponer, per beneficiary, per calendar year, free of CAT and without using the lifetime threshold. Two parents can therefore pass €6,000 to each child every year.
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The content of this site including blogs and podcasts is for information purposes only. Everybody’s financial situation is different and the content we share on our site and through podcasts may not be applicable to you.
The articles, blogs and podcasts are not investment advice. They do not take account of your individual circumstances, including your knowledge and experience and attitude to risk. Informed Decisions can’t be held responsible for the consequences if you pursue a course of action based on the information we share
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August 24, 2026
Planning to 95: Life Expectancy, the Irish ARF and the Real Retirement Lever
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