Can I retire at 60? Ireland retirement calculator

How the calculator works

1. Until you retire your pay goes up each year, you and your employer pay into your pension pot, and the pot grows. You save the amount you set each year; the rest of your pay is spent.
2. When you draw your pension you take a lump sum (up to 25%: the first €200,000 in your lifetime is tax-free, the next €300,000 is taxed at 20%) into savings, and the rest goes into an ARF.
3. Each year of retirement your spending is paid first from income after tax (work and State Pensions, the ARF minimum drawdown), then from savings, then from extra ARF drawdowns, taking the tax on those into account. What cannot be paid is shown as not covered.
4. UK years add a UK State Pension from the UK State Pension age, converted at the pounds-per-euro rate you set, rising with inflation and taxed in Ireland without USC. Missing UK years: our UK voluntary NI from abroad calculator shows which you can still buy.
5. Tax is worked out for the household each year: income tax with the age credit and the age exemption for over-65s, USC (not on the State Pension), and PRSI on pay only (none from 66 on the State Pension).
6. Today’s money: inputs are 2027 euros. Spending and the State Pension rise with inflation; tax bands and credits too unless you untick it.

The rules, and where each comes from

• Income tax bands and credits for 2026: €44,000 single band, €53,000 married (one income) +€35,000 for a second income; personal €2,000, employee €2,000, age credit €245 single / €490 married. Source, read 4 November 2026.
• Budget 2027: bands +€2,500 (single €46,500), personal and employee credits €2,125, USC 2% band to €30,300; social welfare pensions +€10 a week from January 2027. Source, read 4 November 2026.
• Age exemption limits (65 or over): €18,000 single, €36,000 married or civil partners; €575 per child for the first two, €830 after. Source, read 4 November 2026.
• Marginal relief: tax limited to 40% of income above the exemption limit while income is under twice the limit; no credits then (Revenue’s example: Jim, €38,000, tax €340 not €1,110). Source, read 4 November 2026.
• USC 2026: 0.5% to €12,012, 2% to €28,700, 3% to €70,044, 8% above; none at €13,000 or less; State Pension and all DSP payments exempt; on lump sums only above €500,000. Source, read 4 November 2026.
• Reduced USC (0.5% to €12,012, 2% above) at 70 or over, or with a full medical card, on income of €60,000 or less; the medical card rate is legislated to 31 December 2027. Source, read 4 November 2026.
• No PRSI on occupational or social welfare pensions; occupational pensions pay USC; State Pension pays income tax only. Source, read 4 November 2026.
• PRSI age limit 70 since 2024, but none for people 66-70 who draw the State Pension (Contributory) (Class M). Source, read 4 November 2026.
• Employee PRSI Class A: 4.2% to 30 Sep 2026, 4.35% from 1 Oct 2026 (4.5% from 1 Oct 2027 under the PRSI roadmap, held after that). Source, read 4 November 2026.
• Retirement lump sums: €200,000 lifetime tax-free from all sources, €200,001-€500,000 at 20%, above €500,000 at 40%; 25% of a personal pension fund. Source, read 4 November 2026.
• ARF and vested PRSA imputed distribution (s790D TCA): 4% when 60 or over for the whole year, 5% when 70 or over for the whole year, 6% of the whole fund when over €2m; less actual distributions (Pensions Manual ch. 28, updated 22 May 2026). Source, read 4 November 2026.
• Standard Fund Threshold: €2.2m (2026), €2.4m (2027), €2.6m (2028), €2.8m (2029). Source, read 4 November 2026.
• Relief on own pension contributions: 15% of earnings under 30 rising to 40% at 60 or over, earnings up to €115,000. Source, read 3 November 2026.
• An Irish social welfare pension qualifies for the Employee Tax Credit (TDM 15-01-07 §3.1); ARF drawdowns are not on Revenue’s list, so we give them none. Source, read 4 November 2026.
• UK State Pension (for UK years): full new State Pension £241.30 a week, 35 qualifying years for the full rate. Source, read 4 November 2026.
• UK State Pension age: 66 if born before 6 April 1960, 66 and 1 to 11 months to 5 March 1961, 67 to 5 April 1977, then 68. Source, read 4 November 2026.
• UK State Pension rises each year if you live in the EEA (Ireland), Switzerland or Gibraltar; frozen in most other countries (e.g. Canada). Source, read 4 November 2026.
• Irish residents claim relief from UK tax on the UK State Pension (Ireland-UK double taxation agreement), so it is taxed in Ireland; it earns the Employee Tax Credit (TDM 15-01-07 §3.2) and pays no USC (social welfare from abroad is exempt). Source, read 4 November 2026.
• Pounds to euro: ECB reference rate €1 = £0.83460 on 4 November 2026 (an input you can change). Source, read 4 November 2026.
• State Pension (Contributory) 2026: €299.30 a week at 66 (€313.40 at 67, €328.90 at 68); +€10 from January 2027; from age 66, deferral to 70 possible. Source, read 4 November 2026.

Not included: the Increase for a Qualified Adult, the Benefit Payment for 65 Year Olds, annuities, tax on savings growth (enter growth after tax), PRSI on rent or investment income, and changes to the rules after Budget 2027. Growth, inflation and spending are your assumptions; markets can fall. General information, not advice: for a decision about your pension, talk to a qualified financial adviser. By DecisionsCalc.

Frequently asked questions

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