You need a lot to retire comfortably in Ireland. When you retire, your salary stops while life keeps going – you’ll lose the company car, the annual bonus and plenty of other extras as soon as you finish at the office.
You will still need to pay bills, keep up with any loan payments, and maybe have a mortgage to finish. It looks like the kids won’t be financially stable until their 40s these days, and you’ll want to spoil the grandkids when they pop over on the weekend.
Surely, you’ll want to go on those dream holidays now that you have the time?
Living costs money. You’ll get the State pension in Ireland when you reach retirement age, but that’s only €265.30 per week or €13,800 annually, a big drop if you’re earning the average wage of around €45,000.
Living in the Ireland of 2023 is not cheap, and costs are only increasing. Average outgoings are about €3,374 per month for a family of four, excluding mortgage or rental payments.
Even if you make savings here and there, it’s still way above what the State pension will give you. People make up the difference by contributing to a private pension plan.
As you get older, you can start to add more to your private plan, and there are many benefits, not least a larger pension pot, when you retire.