You need a large pension pot when going into retirement in Ireland. If you take early retirement or retire at the State pension age, 66, you could easily have 30 to 35 years ahead of you to fund, and it’s not cheap to live in Ireland.
According to the CSO, you need to take home around €15,000 per annum to avoid slipping into poverty, and that’s at today’s income and cost levels. The €15,000 does not include holidays, eating out, changing the car, home repairs and other extras; it only covers basic costs of living.
You would need a pension pot of €500,000 to give you enough of an annual pension of €16,000, a little more than the minimum you need to avoid slipping into poverty when you retire.
If you are starting off in your working life, you will need to look to the future and see how much you will need in 40 years to give you a comfortable retirement.
You will need more than the €500,000 pot to get by, and that is why you need to start a pension now to maximise your pension growth over the years of your working life.