Planning for retirement in Ireland? Discover expert insights to avoid common retirement planning mistakes and secure a comfortable, stress-free future.
Retirement should be something to look forward to, not something that fills you with financial worry. Yet for many across Ireland, simple mistakes in retirement planning can lead to serious setbacks. Whether you’re just starting to think about pensions or reviewing your long-term savings, knowing what not to do is just as important as knowing what to prioritise.
Let’s explore five of the most common retirement pitfalls — and how you can steer clear of them.
Don’t Underestimate Your Retirement Expenses
Retirement budgeting in Ireland is often misunderstood. Many assume post-retirement life is cheaper, but between travel, healthcare, home repairs, and helping family, expenses usually stay the same.
How to avoid it:
- Create a detailed retirement budget based on your lifestyle.
- Factor in healthcare, insurance, inflation, and unexpected costs.
- Use an Irish retirement calculator like: Zurich Life Cost of Retirement Calculator
🔍 Tip: A clear budget today reduces financial stress tomorrow.
Don’t Rely Solely on the State Pension
The Irish State Pension offers a safety net, not a full solution. As of 2025, the Contributory State Pension is approximately. €277 per week. It may cover the basics, but it won’t support the lifestyle most retirees hope for.
How to avoid it:
- Set up a Personal Retirement Savings Account (PRSA) or occupational pension.
- If you’re self-employed, a PRSA is tax-efficient and flexible.
- Learn more about PRSA pensions on Citizens Information
- To explore your retirement planning and pension options, check out our pension services
💬 Ask yourself: could I live the life I want on just the state pension?
Don’t Delay Your Retirement Planning
Starting late is one of the most common retirement mistakes to avoid in Ireland. Waiting until your 40s or 50s to begin saving often means higher contributions — or delaying retirement.
How to avoid it:
- Start in your 20s or 30s with even small amounts (e.g. €50/month).
- Prioritise retirement over short-term expenses when possible.
- Learn how compound growth works in our savings & investment section
📌 In retirement planning, time isn’t just money — it’s freedom.
Don’t Overlook Healthcare and Long-Term Costs
Healthcare becomes more relevant in retirement. While Ireland has a public system, private care, prescriptions, and long-term treatment often involve significant costs.
How to avoid it:
- Review your health insurance annually with providers
- Build a dedicated buffer into your savings plan.
- Consider income protection or serious illness cover.
Don’t Forget to Review Your Retirement Plan Regularly
Life evolves — and so should your financial strategy. Even the best retirement plan in Ireland needs updating.
How to avoid it:
- Review your pension contributions, investment performance, and risk annually.
- Check your PRSI contributions on MyWelfare.ie
- Learn how your State Pension eligibility is affected by PRSI
- Speak with a qualified financial advisor in Dublin or near you.
- Book an annual financial review via our Consultation & Contact page.
👥 For tailored retirement planning advice in Ireland, speak with Stephen Donnelly at Donnelly Financial Planning.
Conclusion: Plan Smart, Retire Happy
Good retirement planning in Ireland isn’t just about money — it’s about peace of mind. Avoiding these common mistakes gives you control, clarity, and comfort in your golden years.
Contact Stephen Donnelly at Donnelly Financial Planning and begin shaping a retirement you’ll enjoy, not endure.
Warning
*Past performance is not a reliable guide to future performance.
*The value of your investment may go down as well as up.
*Your investment fund may be affected by changes in currency exchange rates.
*If you invest, you may lose some or all the money you invest.
