Early retirement in Ireland

If you’re hoping to retire early, you’re not alone. Almost three-quarters of Ireland’s working population aspire to retire at or before age 60.

On this page, you’ll discover what early retirement in Ireland could look like, including implications for your pension, pros and cons, and how much money you might need. We’ll also explore practical steps you can take to help you work towards the goal of retiring early, like setting up a high-interest savings account.

Early retirement means stepping away from work before you reach the standard State Pension age. In Ireland, the minimum age to claim the State Pension is currently 66, though you now have the flexible option to defer claiming it up to age 70 in exchange for higher payments.

You might decide to retire early, or it could happen unexpectedly if you are made redundant or face health issues. The typical early retirement age in Ireland ranges from 50 to 65. Your exact options will depend on your employment contract and the rules of your specific pension scheme.

Leaving the workforce ahead of schedule means you will have an income gap before your state benefits begin. You will need to rely on your personal savings and private pensions to fund your lifestyle during these years. This requires careful preparation to ensure your money lasts for a longer period of time.

The exact age you can retire depends on the type of pension plan you hold, and any additional funds you have to support your retirement.

Most occupational pension schemes allow you to take early retirement from age 50, provided you have left that specific employment. You will generally need the consent of the pension trustees, and sometimes your employer, to do this.

If you hold a Personal Retirement Savings Account or a personal pension, the standard statutory access age is 60. However, an exception exists allowing you to access your PRSA from age 50 if you are retiring from PAYE employment.

Early retirement is a popular goal, with 72% of Ireland’s working population aspiring to it. Four in 10 workers say they’d retire by the age of 50 or even sooner if they could, and a third state 60 as their ideal retirement age*. However, over half of Irish workers expect the State Pension to be their main source of income**, which would leave a gap between early retirement age and the age at which they could claim their pension at 66. When asked about the realities of retirement, just 3% of people expected to be able to retire by 55. 53% expected to leave the workforce when they reached State Pension age, or just before. 20% said they would not be able to retire until the age of 70***.

*https://www.royallondon.ie/press-releases/2025-press-releases/March/ideal-retirement-age-March-2025/
**https://www.cso.ie/en/releasesandpublications/ep/p-pens/pensioncoverage2024/keyfindings/
***https://www.royallondon.ie/press-releases/2025-press-releases/april-2025/predicted-retirement-age-April-2025/

Early retirement depends on solid financial planning to create income options that can bridge the gap between retirement and State Pension age, and help create the lifestyle you want in retirement. A growing number of people are followers of the Financial Independence Retire Early (FIRE) movement, which suggests that by aggressively saving and investing, you could retire as early as your 40s.

From a practical perspective, many employment contracts in Ireland set a retirement age, typically around 65. However, depending on your employer and scheme rules, you may have the option to take early retirement and access your occupational pension from age 50, provided you leave the company. Early retirement in the public sector has different rules to the private sector. So if you’re wondering how early you can retire, a first step might be to check your employment terms to see what’s possible for you.

As an example, if you wanted to retire at 60, you would need to calculate the income gap between age 60 and the State Pension age at 66. This means you need six years of fully self-funded living expenses.

Calculation Example: If you determine you need €30,000 per year to live comfortably, you would multiply this by the six years until your State Pension begins.

€30,000 x 6 years = €180,000.

With this example, you’d need at least €180,000 in accessible savings or private pension income to bridge the gap until you reach age 66. You may also want additional income once you begin receiving your State Pension, as inflation can reduce the purchasing power of your money over time.

Sometimes, early retirement isn’t a choice you make, but a necessary decision if you become ill while still employed. If you’re under 66 and have to permanently stop working due to ill health, you may be eligible to apply for the Invalidity Pension. This is a long-term payment based on your PRSI contributions, which automatically transfers to the State Pension when you reach 66. For shorter-term illnesses, the Illness Benefit may apply, though this is typically capped at one or two years.

If you take early retirement due to ill health,you may be eligible to receive your pension immediately, and in some cases, you may receive notional added years. These are additional years credited to your pension record, even though you didn’t actually work them.

Terms and conditions of early retirement due to ill health vary by pension scheme. In a defined benefit scheme, you may receive full benefits at normal retirement age, providing immediate financial support. However, in a defined contribution scheme or personal pension plan, retiring early could reduce your annual income.

Cost-Neutral Early Retirement (CNER) is a way for public servants to retire early in Ireland and get their pension before their preserved (standard) pension age, which is typically 60 or 65. Under this arrangement, eligible employees can retire between the ages of 50 and 60, depending on when they started working. The pension amount will then be reduced to account for the early payment and longer payment duration.

To be eligible for CNER, you have to meet certain requirements. Firstly, you should be working for a public service organisation and be a member of their pension scheme. CNER is an option open to most standard public servants, including teachers, nurses, and clerical officers. Secondly, you must have the right to receive your pension at either age 60 or 65, depending on your scheme. Finally, you should apply for CNER and complete the HSE early retirement form before you retire.

If you’re considering early retirement in Ireland, you may be wondering whether you can cash in a pension early. The main requirement is that you must have left the job where you built up your pension, and you must have been employed in the private sector.

The rules for early access to pensions vary depending on the type of pension scheme you have:

• Defined benefit pension schemes: Accessing these pensions early can be difficult, as they typically have strict rules around early withdrawals, and benefits are usually based on a set formula linked to your salary and years of service. You may need to meet specific criteria, such as experiencing ill health, to access funds early. If you do meet the criteria, early pension access may be possible from age 50.
• Defined contribution pension schemes: With these occupational pension schemes, it is often possible to access your pension early from age 50, provided you have left the employment associated with the scheme and have the consent of the pension trustees. Early access is also permitted on grounds of permanent ill health.
• PRSAs (personal retirement savings accounts): PRSAs have specific access rules under Revenue guidelines. The standard withdrawal age is 60. However, you can access your PRSA from age 50 if you’re retiring from PAYE employment. If you’re self-employed, or if you do not meet the PAYE retirement criteria, you must generally wait until age 60 to access your funds.

With most schemes, you can access up to 25% (up to a maximum of €200,000) of your pension fund as a tax-free lump sum, but income tax applies to the rest. Occupational pension schemes let you take a lump sum based on your salary and years of service.

After taking a lump sum from your pension upon retirement, you have options such as paying for an annuity or transferring the rest of your pension into an Approved Retirement Fund (ARF). An annuity offers payments over a specific period of time, providing a guaranteed income stream. On the other hand, an ARF can provide more flexibility in managing retirement funds.

You might find it helpful to get advice from a financial adviser to understand the specific rules around early pension withdrawal in Ireland and what it would mean for you.

Deciding to retire early is a major financial step. It can help to weigh the lifestyle benefits against the financial realities.

You might start by thinking about how you plan to live your life as you age, and whether your savings will be enough to sustain that lifestyle. Looking ahead, you might also factor in unexpected expenses, healthcare costs, and inflation over a potentially longer retirement period.

Here are some of the pros and cons of early retirement: 

With over 30 European partner banks offering competitive rates on savings accounts, including fixed term deposit accounts and demand deposit accounts, Raisin offers plenty of choice if you’re considering early retirement in Ireland and looking for ways to grow your savings.

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