How Much Do I Need in a Pension to Retire Comfortably?

pension personal pension Feb 09, 2022

There’s no definitive answer to this as it all depends on the individual and what their goals are when they retire. If you want to continue living a fairly normal lifestyle you will require a much smaller fund than someone who wants to jet off around the world. If you, as an individual, qualify for the state pension you will receive approximately €1,075 per month, this can vary depending on if you have a dependent spouse and  your overall PRSI contributions etc. 

If you’re working with a pension then the actual amount you need to have can be determined by your income need and then working backwards to determine the fund required to generate it.  

To do this we would use the standard figure of 4%. 

We use 4% because it represents the standard annuity rate and is also the globally accepted, sustainable rate of withdrawal from post-retirement investment funds i.e. Approved Retirement Funds (ARF) in Ireland. 

If we work with that, then each additional €1,000 you want on top of your state pension each month, would need €300,000 in a pension fund to provide it. 

In other words, you get €1 euro worth of monthly income in retirement for every €300 you have saved. Guaranteed income is expensive which is why you need to have an appropriate strategy in place to get the most out of the money you invest. 


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