Your 60’s – cruising to the end of your working life

Your 60s should feel like the final stretch of a long race — not a sprint, but a purposeful cruise towards the finish line. The mortgage might be paid off or nearly there. The kids are (hopefully) standing on their own two feet. Your earnings are likely at their peak. But the decisions you make in this decade will shape the next 25 to 30 years of your life.

That’s not an exaggeration. If you retire at 65, you could easily live to 90 or beyond. That’s a quarter of a century funded not by a salary but by the pension pot, savings, and State Pension you’ve built — and the decisions you make right now about how to access them.

Key takeaways:

• Your 60s are about converting decades of saving into a sustainable retirement income — the strategy matters as much as the pot
• Tax-free pension lump sums need careful planning to avoid costly mistakes
• Your investment strategy should reflect a multi-decade retirement, not just the transition date
• Tracking your actual spending now gives you the most accurate picture of what retirement will cost
• Part-time work, phased retirement, and staying active are increasingly common — and financially sensible

Planning Carefully for the End of Your Working Life

The first thing to do in your 60s — if you haven’t already — is build a retirement roadmap for the next 12 to 36 months. Not a vague aspiration, but a concrete plan with dates, income sources, and decision points.

Start by listing everything you’ll have coming in:

Income Source	When It Starts	Key Considerations
State Pension (Contributory)	Age 66	Check your PRSI record now — do you have the 2,080 contributions needed for the full rate of €289.30/week?
Occupational pension	Scheme retirement age (often 65)	What lump sum and income options are available? DB vs DC makes a big difference
Personal pension / PRSA	From age 60 (PRSA) or 50 (occupational)	ARF vs annuity decision. Timing of access matters for tax
Savings and investments	Anytime	Tax treatment varies — exit tax on funds (41%), CGT on shares (33%), DIRT on deposits (33%)
Rental or other income	Ongoing	Taxable as income. Factor in maintenance costs and potential vacancies

Then stress-test the plan. What if you live to 95? What if inflation runs at 3% for the next decade? What if markets drop 25% in your first year of retirement? Cash flow modelling answers these questions with actual numbers rather than hope.

How to Maximise Your Tax-Free Pension Cash

For most people, the tax-free retirement lump sum is the single largest tax-free payment they’ll ever receive. Getting it right can save you tens of thousands. Getting it wrong can cost you just as much.

The rules in Ireland allow you to take up to 25% of your pension fund as a tax-free lump sum, capped at €200,000. Amounts between €200,000 and €500,000 are taxed at 20%. Above €500,000, it’s taxed at your marginal rate.

Lump Sum Amount	Tax Treatment
First €200,000	Tax-free
€200,001 – €500,000	Taxed at 20%
Above €500,000	Taxed at marginal rate (up to 40% + USC)

If you have multiple pensions, sequencing matters. Taking lump sums from different schemes in different tax years can sometimes be more efficient than crystallising everything at once. Coordinating retirement dates across pensions, timing AVC withdrawals, and aligning with your expected income in each year — these are the details that a financial planner manages and that most people don’t think about until it’s too late.

Common mistakes to avoid: taking a large lump sum without a plan for the remaining fund (leading to an income gap later), triggering unnecessary tax by poor timing, and underestimating the impact on your spouse’s position if something happens to you.

Should You Keep Saving and Investing in Your 60s?

Yes — if you’re still earning. Your final working years can be among the most valuable for pension building. Tax relief still applies (at age 60+, you can contribute up to 40% of earnings), and if your employer offers matching contributions, every euro counts.

AVCs (Additional Voluntary Contributions) are particularly powerful at this stage. If you’ve been under-contributing for years, a focused push in your early 60s can materially improve your retirement position. The compounding period is shorter, but the tax relief and employer match still deliver immediate value.

Outside pensions, keep an accessible cash buffer — at least 12 months of living expenses if you’re within a few years of retirement. This protects you from being forced to sell investments at a bad time during the transition from working to retirement.

Reviewing Your Investment Strategy for a Multi-Decade Retirement

Here’s a common mistake: people approaching retirement move everything into cash or very conservative funds. It feels safe. But retirement isn’t a single date — it’s a 25-to-30-year phase. Moving everything to cash at 65 means your money needs to last three decades without any real growth, all while inflation erodes its purchasing power.

A better approach is the “time bucket” strategy:

Bucket	Time Horizon	Purpose	Typical Allocation
Short-term	0–3 years	Immediate income needs, bills, emergencies	Cash, money market funds
Medium-term	3–10 years	Stability with modest growth	Bonds, cautious multi-asset
Long-term	10+ years	Growth to sustain later retirement	Diversified equities, growth funds

The short-term bucket gives you confidence that the next few years are covered regardless of what markets do. The long-term bucket gives your remaining fund the best chance of beating inflation over the decades ahead. Review your fund choices, fees, and diversification — and make sure your investment strategy matches how you’ll actually draw down your money.

Track Your Spending Now — Not After You Retire

Most people have no idea what they actually spend. They know their salary and their mortgage payment, but the day-to-day — groceries, insurance, utilities, subscriptions, transport, eating out — is a blur.

In your 60s, tracking your actual monthly spending is one of the most valuable things you can do. It tells you what retirement will really cost, not what you assume it will cost. Many people find they need less than they expected (no commute, no work wardrobe, no childcare). Others discover that travel, hobbies, and home maintenance cost more than they planned for.

A month of detailed tracking is enough to get a realistic baseline. Use that number — not a rule of thumb — in your retirement cash flow model.

Keep Your Protection in Place

As you approach retirement, review your insurance cover carefully. Life assurance may still be relevant if your spouse depends on your pension income, or if your estate will face an inheritance tax liability. Income protection typically ends at retirement age — but if you’re planning to work past 65, check whether your policy extends.

Health insurance becomes increasingly important. Medical costs tend to rise with age, and waiting lists in the public system can be long. If you’ve had private health insurance, now isn’t the time to let it lapse. Review your plan annually to make sure the level of cover still matches your needs and budget.

Consider Part-Time Work or Phased Retirement

The old model of working full-time on Friday and retiring completely on Monday is fading. More people in their 60s are choosing to step down gradually — reducing hours, consulting, mentoring, or picking up flexible work that keeps them engaged without the intensity of a full-time role.

There are good financial reasons for this. Part-time income reduces the draw on your pension fund in the early years of retirement, giving it more time to grow. It also bridges the gap between retiring from your main career and the State Pension starting at 66. And the flexible retirement option means you can now defer your State Pension to age 70 for a higher rate if you’re still earning.

Beyond the money, staying active matters. The research on retirement wellbeing consistently shows that purpose, social connection, and routine are protective factors against decline. Work — even part-time — provides all three.

Frequently Asked Questions

When can I access my pension in Ireland?

It depends on the type. Occupational pensions and Buy Out Bonds can typically be accessed from age 50 (with employer consent) or the scheme’s normal retirement age. PRSAs and personal pensions are accessible from age 60. The State Pension starts at 66, with the option to defer to 70 for a higher payment.

Should I take an annuity or an ARF?

An annuity gives guaranteed income for life — simple, predictable, but inflexible and currently offering modest rates. An ARF (Approved Retirement Fund) keeps your money invested with flexible withdrawals, but carries market risk and requires minimum annual drawdowns (4% from age 61, 5% from age 71). Some people use a combination. The right split depends on your other income, risk tolerance, health, and whether you want to leave funds to beneficiaries.

How long will my pension fund need to last?

Plan for at least 25–30 years. If you retire at 65, reaching 90 is increasingly common. Running out of money at 85 is a real risk if your drawdown rate is too aggressive in the early years. Cash flow modelling can show you exactly how long your fund lasts under different scenarios.

Your Next Steps

Your 60s aren’t about winding down — they’re about making the most of the final accumulation years and setting up a retirement that actually works. The decisions you make now about lump sums, investment strategy, drawdown approach, and income timing will echo for decades.

• Get up-to-date benefit statements for every pension you hold
• Check your State Pension eligibility through MyWelfare.ie
• Track your spending for one month to get a realistic retirement budget
• Review your investment strategy — is it positioned for a 25-year retirement, not just the transition?

Ready to build your retirement roadmap? Book a retirement planning session with one of our CERTIFIED FINANCIAL PLANNER™ professionals. We’ll model your income, stress-test your plan, and make sure you’re cruising towards the retirement you’ve earned — not just hoping for the best.