Informed Decisions are one of Ireland’s only remaining independent financial advice firms. We specialise in retirement & investment planning for successful individuals, so that our clients only have to retire once.
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January 19, 2026
Possibly, but it depends on several factors including spending needs, tax position, and withdrawal strategy. As a rough guide, €750,000 might support annual gross income of €30,000 to €35,000, although outcomes vary.
January arrives quickly every year, and for many professionals in their 50's it brings more than new kids' diaries and gym memberships!
It brings the same quiet question that keeps coming back.
Can you actually retire in 2026, or at least move into a lower pressure role without putting your future lifestyle at risk?
This guide focuses on retirement planning Ireland, with (hopefully!) practical and clear ideas for you to consider and action.
Here’s what you’ll learn:
• How to check if you are realistically on track to retire in 2026
• Which pension and investment decisions matter most this year
• How to plan retirement income instead of just focusing on fund size
• When and how to reduce/increase investment risk
• What to have ready before speaking to a financial planner
Let’s get into it.
January is often the best opportunity to reset your financial planning properly.
When you are one to two years from retirement, you are in a critical planning & organising window.
There is still time to make meaningful improvements, but there is not enough time to ignore problems and hope they solve themselves!
This is the period to focus on:
• Pension contribution opportunities
• Investment rebalancing decisions
• Income planning and cash flow forecasting
• Using tax allowances efficiently
For example, a 55 year old earning €140,000 can still receive tax relief at 40 percent on pension contributions. If that opportunity is missed in a given tax year, it cannot be recovered later. That is real money left behind.
Small delays at this stage often lead to large long term costs when we factor compounding into the equation.
If you have not carried out a proper financial review in the last 12 months, January is the right time to start.
when doing future financial forecasting and planning one must use prudent assumptions. And while there is always going to be an element of fluidity to it, good retirement planning must be based on clear numbers that you understand and can rely on.
Instead of focusing on how big your pension fund looks on paper, start with the income you will actually need after tax.
Ask yourself:
• What level of monthly income would feel comfortable?
• What lifestyle do I realistically want in retirement?
• How much travel, leisure, or family support do I expect to really do?
Many Irish couples aim for between €3,000 and €6,000 net per month, although your own figure may be higher or lower depending on your circumstances. The important part is choosing a realistic target rather than guessing. And don't simply take the net figure you currently have coming in while working, as lots of aspects of your lifestyle will change!
You should gather updated statements for every pension you own, including:
• PRSAs
• Company pensions
• AVCs
• Older preserved pensions and defined benefit incomes
Break your expected retirement spending into categories so it feels real rather than theoretical:
• Fixed costs such as utilities, insurances and groceries
• Lifestyle spending including hobbies and holidays (often can be as big as the fixed costs!!)
• One-off items such as car upgrades or home improvements
A useful exercise is to try living on your planned retirement budget for a month. Many people are surprised by how different it feels.
Before retiring, most people benefit from holding between 12 and 24 months of expected spending in cash or equivalents, minimum.
Bulk of this ought to be held outside of any investments, while a portion may be within investments (non-pension). The source can be savings, proceeds of investments and/or lump sum from pensions potentially.
This helps because:
• Markets do not move in straight lines
• Unexpected expenses appear
• Financial stress reduces significantly
You should also check your PRSI contribution record to confirm your likely State Pension entitlement.
The full contributory pension currently pays over €277 per week based on 2025 rates, but qualification rules and payment levels change over time.
Checking your position early gives you time to fix gaps. And if planning to retire early, considering how to continue your PRSI contributions once you 'exit'!
Also include any State Pension entitlements from abroad. For example HMRC pension in UK - the top-up window closes in April 2026, so get on it if you are eligible!
Relying on memory or outdated paperwork usually leads to errors.
Accurate planning needs accurate data.
This is where good tax planning can make a measurable difference.
If your pension is behind target or you have no maximised contributions, Additional Voluntary Contributions (AVCs) can be a useful tool.
Contribution limits depend on your age.....
For example, between ages 55 and 59 you can contribute up to 35 percent of your gross income and receive tax relief.
From age 60 onward, this increases to 40 percent.
The maximum allowable figure for the calculation is €115,000 income. So if aged 55 to 59, maximum personal contribution from you (separate to employer) to pensions (between main scheme, PRSA and/or AVC) is €40,250 per year, on which you get full 40% tax relief/refund.
The timing of these contributions often matters just as much as the amount.
Pension tax relief is linked to the tax year.
If you miss the deadline, the opportunity is lost. Many people delay decisions until December and then rush through poor choices. Planning earlier in the year gives you far more control.
You have until October/November this year to make a personal contribution to pension, and to reduce the tax you have to pay on your 2025 returns.
If completing Form 11, you will have a heck of a job running the Revenue calculator tool in the Form 11 - so give yourself plenty of time!!
Most retirees are entitled to take a tax free lump sum, but what you do with that lump sum can affect your long term outcomes.
Some people use it to clear debt. Others build cash reserves or invest outside pensions. The right approach depends on your wider financial picture.
As retirement approaches, your investment strategy may need to change.
We often see people who have been members of pension schemes for many years, but have never received specific advice or guidance on the investment approach they have been taking all these years.
Some are invested in 'Annuity Lifestyling' (see Blog 249) strategies which assume the individual will buy an annuity with the pension upon retirement. The investment profile therefore changes dramatically to help them arrive at point of retirement with pension almost entirely invested in deposits, Moneymarket funds or bonds. This 'might' make sense if they really do intend buying an annuity, but very little sense and will be at high risk or ruin if they don't choose annuity!
And vice-versa - some people are invested in a high volatility approach but have not thought fully through their navigation of market corrections, particularly ones that might coincide with their intended pension lump-sum withdrawals, and future income generation.
The devil is in the detail!
Sequence risk refers to the danger of experiencing market losses early in retirement while you are withdrawing money from an Approved Retirement Fund (ARF).
Two people can retire with the same pension value and withdraw the same income, yet end up with very different outcomes depending on market performance in the early years of their portfolios.
It is therefore important, if you are choosing an ARF, that you have given consideration to how to navigate market corrections (because there will be corections!) over the course of your draw-down, particularly the early years.
• Do not sell everything after negative headlines, unless that is part of some plan or being advised based on evidence
• Do not chase last year’s best performing fund or 'theme' - they rarely repeat the feat!
• Do not leave a high risk or low risk portfolios untouched by default -they must be aligned with your plan and strategy
Investment Risk Near Retirement
Most people can take up to 25 percent of their pension fund, subject to lifetime limits. Currently the first €200,000 is tax free, with higher amounts taxed at different rates. Always check current thresholds before acting.
Do you want to move straight from full time work to full retirement, or have a 'phased withdrawal'?!
Earning even modest income in early retirement can significantly improve sustainability, and confidence to exit fully.
For example, earning €25,000 per year part time could reduce pension withdrawals by roughly €2,500-€3,000 per month gross, which can extend the life of your pension funds, investments and assets, and reduce stress!
Some pensions allow access from age 50, while others start from 60. While others such as PRSAs allow delaying draw-down to up to 75 years of age if that suited you and your plan. Understanding which assets to use first can improve tax efficiency and long term outcomes.
Using PRSAs for Phased Retirement Planning
Use this as a working action list rather than a theoretical plan.
Action Deadline
Update pension statements This month
State Pension record check Within 30 days
Build cash reserve Before year end
Review investments Quarterly
Update will and beneficiaries This quarter
Printing this and keeping it visible often helps people actually follow through?
Not everyone needs advice, but many people benefit from a structured second opinion and expert guidance on this major stage of life.
You should consider booking a call to assess a financial planning firm if:
• You are unsure how much income your pensions and assets can provide
• You hold multiple pensions across different providers with no clear handle on what it all means
• You want to reduce work pressure safely, and on your own terms with confidence
• You worry about market risk and the impact it can have on your financial security
• You want clarity instead of guesswork, and expert inputs to maximise opportunities
If retirement planning Ireland style means clarity, structure, and calm decision making, you are in the right place.
You can:
• Read more on our award winning blog
• Listen to the Informed Decisions Podcast
• Book an Initial Call with our team
Small decisions today often lead to much easier retirements later.
Retirement planning Ireland for a 2026 retirement is about timing, structure, and preparation.
January gives you momentum if you use it properly.
Know your numbers. Adjust your risk gradually. Plan income carefully. Build financial buffers.
Your next step is simple.
Start the conversation.
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
Market volatility is normal. The bigger risk usually comes from poor planning rather than market movements themselves. Strong cash buffers and sensible withdrawal strategies reduce the impact.
Informed Decisions are one of Ireland’s only remaining independent financial advice firms. We specialise in retirement & investment planning for successful individuals, so that our clients only have to retire once.
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