RETIREMENT PLANNING
RETIREMENT PLAYBOOK:
STRATEGIES FOR SAVINGS, SETBACKS AND SURPRISES
Our 2025 guide to retirement planning considers retirement in the broader context. Along with advice on the options you have at retirement we’ve identified the pitfalls and small print nuances where mistakes are often made. The guide offers tailored advice for various groups, including private sector workers, public sector employees, the self-employed, divorcees, those retiring abroad and those experiencing illness.
01
Introduction –
Jim Connolly
Retirement planning affects us all and pensions should feature in our day-to-day interactions.
Introduction
We all have retirement issues
Retirement and pension issues affect everyone, from rugby players to actors, from business owners to their employees, from those who are terminally ill to those that feel immortal, from newlyweds to divorcees, from lotto winners to the unemployed, we all need to consider retirement. Given their importance, pensions should feature more prominently in our day-to-day interactions, so we have crafted our Retirement Playbook to be relevant regardless of which bracket you fit into.
The overiding message from the Guide is that retirement comes sooner than you think, and the choices you make at the point of retirement may be the biggest financial decisions you will ever make. The time to prepare is now, regardless of your age.
Get in touch today to learn how we can support you in planning for the future.
JIM CONNOLLY
Head of Pensions Technical, Goodbody
Introduction
We all have retirement issues
JIM CONNOLLY
Head of Pensions Technical, Goodbody
Retirement and pension issues affect everyone, from rugby players to actors, from business owners to their employees, from those who are terminally ill to those that feel immortal, from newlyweds to divorcees, from lotto winners to the unemployed, we all need to consider retirement. Given their importance, pensions should feature more prominently in our day-to-day interactions, so we have crafted our Retirement Playbook to be relevant regardless of which bracket you fit into.
The overiding message from the Guide is that retirement comes sooner than you think, and the choices you make at the point of retirement may be the biggest financial decisions you will ever make. The time to prepare is now, regardless of your age.
Get in touch today to learn how we can support you in planning for the future.
02
Retirement is evolving
The traditional concept of retirement has changed.
A contemporary approach to retirement
Chapter Summary
The traditional concept of retirement has evolved from a crash landing at age 65 to a glidepath path over a period. And many clients never fully retire but reinvent themselves. Similarly, planning for retirement has evolved from simplistic decisions on lumps sums and annuities to a holistic and sophisticated advice exercise that takes account of succession, tax, and investment planning. Our Retirement Playbook provides a contemporary approach to your retirement and provides guidance for anything you meet along the way – from thresholds to termination payments.
Download a copy of our Retirement Playbook below to find out more.
03
Sources of Income
A pension is simply a savings strategy.
Sources of Income
Chapter Summary
At its core, a pension is simply a savings strategy. That’s it. Retirement planning is fundamentally about savings. And retirement is exactly the kind of “rainy day” those savings are meant for. The mistake many people—and even pension consultants—make is focusing too narrowly on the pension itself. Income in retirement does not emanate from a single source. It arises from a myriad of different places – savings, property, inheritances, business assets, State Pensions, amongst other.
The Retirement Playbook guides you through each source and explains how each slice features in your income ‘pie’.
Download a copy of our Retirement Playbook below to find out more.
04
Retiring from the Private Sector
The traditional concept of retiring at age 65 is gone.
Retiring from the Private Sector
Chapter Summary
Retirement is an evolving concept. The traditional idea of reaching age 65, hanging up your boots and never working again is largely outdated. Most people will have worked for several employers over the course of their career, resulting in multiple retirement dates.
This gives rise to the first in a series of important decisions that you will need to consider:
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Are you retiring all your benefits, or just those linked to one employment?
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Does the value of this event bring you above the €2m fund threshold?
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Do you take a lump sum?
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What drawdown vehicle should you use?
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Should you consider buying an annuity?
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Do you have to stop working?
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Will you still get a State Pension if you go early?
The Retirement Playbook provides answers to these questions and tells you more about the options available to you.
Download a copy of our Retirement Playbook below to find out more.
05
Retiring from the Public Sector
There are a number of unique considerations for public sector employees.
Retiring from the Public Sector
Chapter Summary
All public sector schemes operate on defined benefit schemes, thus fuelling the perception that they (public servants) have it better than us (private sector workers). This is only partly true. Whilst public servants do enjoy valuable pension entitlements, they do not benefit from the breadth of options in the private sector.
Public vs Private Sector options:
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There are no transfer values, so they cannot sacrifice their benefit in favour of a capital sum
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Public servants cannot have an Approved Retirement Fund
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Public servants will never get a lump sum of more than one and half times their salary
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Public servants cannot pass on pension assets to adult children.
So, it’s not all one-way traffic. However, on the flip side public servants have several very useful options to cater for Chargeable Excess Tax (CET) and this is the focus of this chapter in the Retirement Playbook.
Download a copy of our Retirement Playbook below to find out more.
06
State Pension
The rules for qualifying for the State Pension are changing.
State Pension
Chapter Summary
The rules for qualifying for the State Pension are changing as we speak, and many clients will be positively impacted by the new Total Contributions Approach. The traditional approach to qualification is known as the yearly average approach, and the rules for qualifying are surprisingly straightforward.
To qualify for the state pension:
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You must be the right age – which is now age 66. You can choose to defer your retirement until age 70.
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You must have started paying PRSI before age 56,
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You need ten years PRSI contributions
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You must meet a yearly average
A new system of qualification was introduced that would provide a State Pension reflective of the period of time you contributed. Our guide breaks down all you need to know about the Total Contribution approach.
Download a copy of our Retirement Playbook below to find out more.
07
Retiring abroad
Retiring abroad is an option that should be explored for those with sizeable pension assets.
Retiring Abroad
Chapter Summary
Retiring abroad does not suit everyone but it’s an option that needs to be explored for those with sizable pension assets, those with a looming business sale transaction, or those craving sun all year round. Is Portugal still an option? If you have already invested in an Irish ARF is it too late? Do you and your pension have to end up in the same place? The Retirement Playbook will provide you with everything you need to know to validate or extinguish the option to hop on a flight.
Download a copy of our Retirement Playbook below to find out more.
08
Standard Fund Threshold
Strategies to mitigate, postpone or even extinguish a potential CET charge.
Standard Fund Threshold
Chapter Summary
The Standard Fund Threshold has been a bit of a moving target in Ireland since it was first introduced in 2005. The current threshold of €2m is due to increase to €2.8m over the coming years. Pension assets that exceed the threshold can attract a penal super tax (Chargeable Excess Tax – CET) of 40%. Having an issue with the threshold is a positive problem to contend with and there are several strategies that investors can employ to mitigate, postpone or even extinguish a potential CET charge. The Retirement Playbook will provide you with everything you need to know about the issues and solutions available.
Download a copy of our Retirement Playbook below to find out more.
09
Corporate Funding
Some business owners view the business as the pension.
Corporate Funding
Chapter Summary
Whilst many business owners tend to view ‘the business’ as their pension, they can be held hostage on the timing of their retirement as they must rely on a sale to realise value from this asset. Pensions represent a useful tool in this regard as they allow the business owner to redirect corporate monies into a personal environment without the need for a business sale. The Retirement Playbook will provide you with insight on the use of pension vehicles for business owners
Download a copy of our Retirement Playbook below to find out more.
10
Leaving your Job
What happens to your pension benefits when you move employer.
Leaving your job
Chapter Summary
In 1990 a seemingly small pension rule was introduced that has had a seismic impact on the Irish employment market. The Pensions Act introduced a statutory right for individuals to retain their pension benefits if they left an employment – provided they had a served a prescribed amount of time in the pension scheme (currently two years).
Now, with people having several employments throughout their lifetime, it is important to consider what happens to the pension benefits they have built up with their employer before moving onto to their next role.
Download a copy of our Retirement Playbook below to find out more.
11
Being made redundant
Methodologies to minimise your tax exposure.
Redundancy
Chapter Summary
A well-planned retirement will often have a strategic redundancy payment at its core. In smaller privately owned companies, employers often incentivise senior staff to accelerate their retirement to facilitate wider corporate aspirations. Individuals can get up to €200,000 in termination payments tax efficiently, and, potentially, these payments can be paid in addition to exempt pension lumps sum. Navigating the rules and exemptions is critical in optimising your outcome.
The Retirement Playbook will outline the various methodologies available to minimise your tax exposure.
Download a copy of our Retirement Playbook below to find out more.
12
Terminal Illness
How to improve the fiscal position of your loved ones.
Terminal Illness
Chapter Summary
While there are several simple and effective actions that a terminally ill individual can take to improve theirs and their beneficiaries’ positions, these actions are often understandably overlooked due to more pressing concerns. However, if you can engage with a wealth manager, they can make material improvements to the outcomes for you and your family. Accessing benefits early with concessionary tax treatment; capturing wishes for the payment of death in service benefits; even last-minute funding strategies need to be explored to ensure that your Estate is optimised.
The Retirement Playbook will divulge all the actions you can take to improve the fiscal position of your loved ones.
Download a copy of our Retirement Playbook below to find out more.
13
Divorce
Pension funds are often the second most valuable asset in a divorce.
Divorce
Chapter Summary
After the family home, pension funds are often the second most valuable asset in a divorce. Our research shows that most peoples knowledge of pensions is poor and this extends to divorcees, solicitors and even Judges. If you are the spouse with the pension or the non-member spouse hoping to get a share of a pension, it is critical for you to have a pensions expert in your corner.
The Retirement Playbook will uncover all the issues, options and strategies you can adopt to protect or plunder the pension assets at stake.
Download a copy of our Retirement Playbook below to find out more.
14
Defined Benefit Scheme
Taking a transfer value from your Defined Benefit scheme.
Defined Benefit Scheme
Chapter Summary
If you are taking a transfer value from your Defined Benefit scheme, the Trustees will be very pleased indeed. If you do opt to take a transfer, the capital value of your benefit moves into a defined contribution environment where the benefit basis will be a whole lot different, and one where you carry all of the risk. Taking a transfer value is not always the right thing to do and this decision needs to be considered very carefully.
The Retirement Playbook will outline everything you need to know.
Download a copy of our Retirement Playbook below to find out more.
15
Auto enrolment
Auto Enrolment is due to come into effect in January 2026.
Auto enrolment
Chapter Summary
Auto Enrolment has been lingering in the legislative background for years but it will be making its debut appearance in January 2026 (allegedly). From that point all employers will have to include any employee in the new system if they fall into the following category.
Criteria
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Are aged between 23, and 60
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Earn over €20,000, and
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Are not already in a pension scheme
If you do have employees that fall into this category you will have to make contributions to the scheme on their behalf. The Retirement Playbook guide outlines all you need to know to ensure you are meeting your obligations.
Download a copy of our Retirement Playbook below to find out more.
16
Self Employed
Making pension contributions when self employed.
Self Employed
Chapter Summary
There is no doubt that the self-employed community (i.e. those assessed to tax under the self-assessment system) are treated poorly from a pension perspective when compared with their PAYE counterparts. They have limited options regarding the pension contracts they can use; the amounts they can contribute are restrictive; and the access points are up to ten years later than that of an employee. This said there are still plenty of strategies they can employ to improve their positions. The Retirement Playbook will unearth all the pitfalls and opportunities.
Download a copy of our Retirement Playbook below to find out more.
17
Investing in your pension fund
Regardless of your pension instrument, the fund underneath is an investment tool.
Investing in your pension fund
Chapter Summary
No matter what pension wrapper (instrument) you are contributing to, the fund underneath it is simply an investment fund.
Pensions have become over-engineered with complexity but then you step back and look at them, they are simply an investment tool. Yes, there are complicated rules around getting money into a pension and getting money out of a pension but, by and large, they are simply an investment fund. That is why you need an investment manager at your side and on your side to help with the investment issues. The Retirement Playbook sets out all the issues you need to consider.
Download a copy of our Retirement Playbook below to find out more.
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Retirement Playbook: Strategies for savings, setbacks and surprises
This guide aims to help individuals plan for their financial needs during retirement and the years leading up to it. The guide offers tailored advice for various groups, including private sector workers, public sector employees, the self-employed, divorcees, those retiring abroad and those experiencing illness.
Enter your details to download your copy today.
