A new report indicates that a person would need €33k per year worth of a pension for a “comfortable” standard of living after retirement, rising to €43k per year for a couple.
The report, Irish Retirement Living Standards, from the Pensions Council states that for a “modest” standard of living post retirement, described as having enough to cover basic needs with some
money left over for nonessentials, a single person would need a pension worth €19,200 per year, rising to €28,800 for a couple.
For what is described as a “moderate” standard of living, which would provide more flexibility and
financial security than if you were at the modest standard, €27,600 would be required by a single pensioner, while €37,200 would be required by a couple.
Meanwhile, a “comfortable” standard of living is described as one with more financial
freedom than the moderate standard, with the prospect of affording some luxuries. For this, a pension of €33,600 would be required by a single person, and €43,200 by a couple.
The Council acknowledged that 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.
“Nonetheless, triangulating between approaches taken elsewhere, and how our survey responded overall, its considered these broad categorisations hold true at the national level,” it said.
The Pensions Council (An Chomhairle Pinsean) was set up to advise the Minister for Social Protection on matters relating to policy on pensions.
The figures are based on a survey of Ireland’s over-65 population and workshops, as well as publicly available data.