Retiring from work

Planning for your retirement will help you make the most of your time, adjust to this lifestyle change and plan your finances.

Sudden or gradual changes?

You may have no choice about when you retire. For example, your contract of employment can end on a specific date or when you reach a particular age. Or you may be able to gradually ease into retirement by reducing your workload or doing part-time work.

How can I prepare for retirement?

A number of organisations throughout the country provide pre-retirement courses to help you to prepare for retirement. There are active retirement organisations that promote education and leisure activities for retired people.

There is no single retirement age as such in Ireland, although 65 is generally the age most people retire at.

Statutory retirement age

In some jobs, there is a statutory retirement age. This means the retirement age is set out in law. There is a statutory retirement age for some public servants.

Mandatory retirement age

Most contracts of employment have a mandatory retirement age (the age at which you must retire). This is usually 65. Many employment contracts, however, allow for early retirement from 60 (or in some cases, from 55). Most also allow for early retirement on health grounds.

Early retirement

Early retirement usually means retirement before the age of 65.

Early retirement can happen because you have to retire from your job at a certain age, because you choose to take early retirement or because you have been let go.

If you choose early retirement, you should check that you will be entitled to social welfare payments.

Many people choose to retire to Ireland. If you are considering this option, you can find out more about retiring to Ireland.

There is information on pensions and residence rights, healthcare and housing. It covers issues you need to consider to make sure your move goes smoothly.

Don’t put off thinking about what will happen when you get older or if you become unable to manage your own financial and legal affairs.

It is important for anyone, at any age, to consider these issues.

Find out about:

• Legal arrangements in the event of incapacity
• Making a will
• Power of attorney

Yes. Most legislation dealing with the protection of employees does not have an upper age limit.

This means that if you are working in retirement, you have the same employment rights as everyone else.

If you decide to work part-time, you have the same employment rights as other part-time workers.

If you are taking early retirement, you may consider yourself unemployed rather than retired and you may need information on benefits for unemployed people. You may be entitled to Jobseeker’s Benefit and then to Jobseeker’s Allowance.

If you are made redundant, you may be entitled to a statutory redundancy lump sum.

You may also be eligible for a range of back to work and back to education schemes.

Pensions

Various types of pension are available.

• If you have contributed to a pension scheme during your working life, you will get an occupational pension or have a personal pension arrangement. You need to deal directly with the pension provider to find out exactly what benefits your pension gives you.
• If you made enough PRSI contributions during your working life, at 66 you may be entitled to the State Pension (Contributory).
• If you have not made enough PRSI contributions, you can apply for a State Pension (Non-Contributory), which is means-tested.
• If you retire at 65, you may qualify for a benefit payment until you reach 66.
• You may also be entitled to Free Travel, the Household Benefits Package and some other extra payments.

How will I be taxed?

If you receive lump sum payment on retirement, find out how it is taxed.

There are some special tax arrangements for people aged 65 or over.

You may also need to find out how pensions are taxed.

You can find out more about:

• Legal arrangements in the event of incapacity
• Making a will
• Power of attorney