€33k a year pension needed for 'comfortable' retirement

A single person would need a pension of €33,600 a year, and a couple would need €43,200 a year, in order to have a "comfortable" retirement.

The figures are contained in a new report on Irish retirement living standards released by the Pensions Council which was prepared and researched by KPMG.

It shows that for a "modest" retirement, which covers basic living expenses with some room for non-essentials, a single person would need a pension of €19,200 a year, rising to €28,800 for a couple.

A "moderate" lifestyle, which would offer more flexibility and financial security, requires a pension of €27,600 for a single person and €37,200 for a couple.

The Pensions Council said it recognises the terms "modest", "moderate" and "comfortable" can be highly subjective and mean different things to different people.

"We also realise that national averages will mask specific circumstances, such as renting in Dublin, material healthcare costs, or travel costs to see children abroad, that would all increase the amounts required to meet each of these subjective states," the council said.

Traditionally, pension savers have often been told to aim for 50% of their pre-retirement salary.

However, the Pensions Council said that this old rule of thumb can be too simplistic and fails to account for individual lifestyles and specific needs in later life.

"We wanted to create a clearer picture of what a retirement might look like, beyond the usual percentages," said Chair of the Pensions Council Roma Burke.

"This work is about helping Irish people to understand what level of income is required to reach different standards of living in retirement," Ms Burke said.

The pension incomes outlined in the report may include the state pension. The current maximum rate of the state contributory pension is around €14,400 a year.

The figures are based on a 2024 survey of Ireland's over-65 population and workshops, cross-referenced with publicly available data, and reflect the cost of living in 2024.

The Pensions Council (An Chomhairle Pinsean) was set up to advise the Minister for Social Protection on matters relating to policy on pensions.

The council said that the retirement living standards outlined in its report are not rigid rules but rather benchmarks to guide personal planning.