A new report released by the Pensions Council of Ireland, prepared by KPMG, outlines the income necessary for a comfortable retirement. According to the findings, a single person would need a pension of €33,600 per year, while a couple would require €43,200 annually to maintain a “comfortable” lifestyle after retirement.
The report also defines various retirement living standards. For a “modest” retirement, which covers basic expenses with some allowance for non-essentials, a single person would need €19,200 per year, and a couple would need €28,800. Meanwhile, a “moderate” lifestyle—providing more flexibility and financial security—would require an annual pension of €27,600 for a single person and €37,200 for a couple.
The Pensions Council acknowledged that the terms “modest,” “moderate,” and “comfortable” can be subjective, varying significantly depending on personal circumstances. The report notes that factors such as living in Dublin, healthcare costs, or travel expenses to visit family abroad could increase the amounts required to meet these standards.
Traditionally, pension savers have been advised to aim for around 50% of their pre-retirement salary. However, the Pensions Council pointed out that this simplified approach doesn’t account for individual lifestyles and specific needs, making it inadequate for accurate retirement planning.
Roma Burke, Chair of the Pensions Council, emphasized the need for a clearer understanding of what a retirement might look like beyond percentages. “We wanted to create a clearer picture of what a retirement might look like, beyond the usual percentages,” she said. “This work is about helping Irish people understand what level of income is required to reach different standards of living in retirement.”
The figures presented in the report are based on a 2024 survey of Ireland’s over-65 population, along with workshops and cross-referenced publicly available data reflecting the current cost of living.
The Pensions Council, established to advise the Minister for Social Protection on pension-related matters, clarified that these retirement living standards are intended as benchmarks, not rigid rules. They are designed to guide individuals in planning their retirement and help them determine the income level needed to achieve their desired lifestyle in later years.
