Early Retirement

Can I Retire at 60 in Ireland? The Real Numbers

Many Irish people dream of retiring at 60 instead of waiting until 66.

3 January 202610 min read

The Early Retirement Dream

Retiring at 60 instead of 66 sounds amazing. Six extra years of freedom. But there's a catch: the Irish state pension doesn't kick in until 66.

That means you need to fund those 6 years yourself. Let's break down what it actually takes.

The Gap Years (60-66)

If you retire at 60, you need private income for 6 full years before the state pension starts.

Annual expenses of €35,000?

  • 6 years × €35,000 = **€210,000 extra needed**
  • Annual expenses of €40,000?

  • 6 years × €40,000 = **€240,000 extra needed**
  • This is on TOP of your normal retirement fund.

    Two Strategies for Early Retirement

    Strategy 1: The Bridge Fund

    Save a separate pot specifically for ages 60-66:

  • Target: 6× your annual expenses
  • Keep it in accessible assets (not locked in pension)
  • Draw it down during the gap years
  • Strategy 2: A Bigger Overall Fund

    Simply save more so your 4% withdrawal covers everything:

  • Instead of €700k, you might need €900k-€1M
  • Your overall fund needs to last from 60 to ~90
  • That's 30 years, so consider a 3.5% withdrawal rate
  • The Math for Retiring at 60

    Example: Single person, €35k/year expenses

    Option A (Bridge Fund):

  • Age 60-66: €210,000 bridge fund
  • Age 66+: €500,000 investment portfolio
  • **Total needed: €710,000**
  • Option B (Bigger Fund):

  • 30-year retirement at 3.5% withdrawal rate
  • €35,000 / 0.035 = **€1,000,000**
  • (State pension reduces this to ~€550,000 after 66)
  • Access to Pensions at 60

    Good news: Most Irish pensions are accessible from age 50 (with employer agreement) or 60 (standard early retirement).

    Bad news: Early access often means reduced benefits:

  • Fewer years of contributions
  • Potential reduction in annuity rates
  • Tax implications of larger withdrawals
  • Is It Realistic?

    Here's what you'd need to save monthly from different starting ages:

    Target: €900,000 by age 60

    | Starting Age | Years | Monthly Savings (5% growth) |

    |-------------|-------|----------------------------|

    | 30 | 30 | €1,100 |

    | 35 | 25 | €1,550 |

    | 40 | 20 | €2,300 |

    | 45 | 15 | €3,700 |

    These are significant amounts. But with employer matching and compound growth, they're achievable for higher earners.

    The "Coast FIRE" Alternative

    Can't save enough to fully retire at 60? Consider "Coast FIRE":

    1. Save aggressively until 50

    2. Let your investments compound to 60

    3. Work part-time or in lower-stress roles from 50-60

    4. Full retirement at 60

    This reduces burnout while still hitting your number.

    Your Next Steps

    1. Take the free quiz to see your current projected retirement age

    2. Calculate your specific gap funding needs

    3. Consider whether partial early retirement makes sense

    4. Review your pension access options


    Wondering if early retirement is possible for you? [Check your numbers with our free calculator](/quiz).

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial, tax, investment, or legal advice. The information presented may not reflect your personal circumstances, and projections are based on simplified assumptions that may not accurately predict future outcomes. Always consult qualified professionals before making important financial decisions. Past performance does not guarantee future results.

    Want to Explore Your Numbers?

    Try our free 2-minute quiz to get a rough estimate of your retirement timeline. Remember: this is for exploration only, not advice.

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