Retirement isn’t a number - it’s a plan

Retirement isn’t as simple as calculating 'the magic number'. It's shaped by:

• Personal goals
• Family priorities
• Health and lifestyle
• Market conditions
• Life expectancy
• Your appetite for risk

Retirement is often described as a milestone but it’s a full financial journey. Retirement today lasts 20+ years on average, involves navigating multiple risks, and demands far more than a simple “how much do I need?” calculation. 

Every person’s situation is different, which is why a one-size-fits-all approach simply doesn’t work. Here’s what really shapes retirement outcomes, and why good financial planning matters. 

1. Lifestyle choices and 'bucket list' goals

Today’s retirees are more active and live longer. Many have big plans for their early retirement years - from travel to new hobbies to helping children or grandchildren. 

These goals impact: 

• How much income you need 
• How long your pension pot must last 
• How you should invest leading up to, and throughout, retirement

With many over-55s holding a significant portion of Ireland’s household wealth*, it becomes even more important to make those assets work effectively. That can be through investing in multi-asset funds like the Prisma range from Zurich, choosing a risk level that suits your needs through the Personalised GuidePath strategy, or maintaining a balanced mix of assets in retirement that can support both day-to-day spending and long-term financial security. 

2. Legacy and inheritance planning 

Legacy planning is a crucial part of retirement - not just for passing on  wealth, but for ensuring clarity, minimising stress for loved ones, and doing so in a tax efficient manner.

At a minimum, every individual should have a professionally drafted Will, reviewed after major life events. Beyond that, there are several practical steps that help shape a thoughtful, efficient legacy plan. 

Many people use Small Gift Exemption strategies to pass on €3,000 a year tax-free to children or grandchildren, while Zurich’s Child Savings Plans offer a structured way to build long-term value for younger family members. When a larger estate is involved, Section 72 policies can be used to cover inheritance tax, ensuring beneficiaries mitigate the possibility of an unexpected tax bill. 

Business owners can use pensions as part of their future exit strategy and can protect their business from their unexpected loss using corporate succession solutions, such as keyperson and co-director insurance to help ensure business continuity and provide liquidity for buyouts or inheritance needs. 

While these decisions are deeply personal, the right combination of tools; a Will, efficient gifting strategies, appropriate policies, and simple investment structures – can ensure your legacy passes smoothly, tax-efficiently, and exactly as intended. 

3. Income needs change throughout retirement 

Retirement isn’t one long, predictable expense pattern. It evolves - in early retirement, spending typically rises as people travel more, upgrade their lifestyle, or complete major projects. Day-to-day spending usually stabilises as routines settle. In later years, healthcare, support services, and medical costs often increase. Because your needs change over time, your income strategy should change too.

A strong retirement plan includes: 

• Flexible drawdown: in years where markets are volatile, you can choose to withdraw income from your lower-risk funds, giving your higher growth funds time to recover instead of selling them at a bad time. 
• Taking advantage of strong markets: when equity or multi-asset asset funds perform well, you can draw more income from those funds, naturally trimming gains while keeping other assets untouched. 
• Maintaining your target risk level: combining flexible withdrawals with your Approved Retirement Fund (ARF)’s rebalancing feature keeps your investments aligned to your goals. 
• A well-managed, flexible income plan can help you make the most of your early years, support greater stability in your middle years, and may better prepare you to meet rising costs in the future.

4.  Reserve strategies 

A rainy-day fund is essential, even in retirement, because unexpected costs don’t stop once you leave the workforce. Home repairs, medical bills, helping children through financial pressures, or even short-term market downturns can all require immediate access to cash. Without readily available liquidity, retirees may be forced to withdraw from their ARF at the wrong time, potentially locking in losses and worsening sequencing risk.

One of the most important, but least understood, retirement risks is sequencing risk. Two investors with the same average annual return can end up with dramatically different outcomes depending on when market losses occur. Early losses in retirement can significantly shorten how long savings last. 

A practical approach is to maintain one to two years of planned income in low-risk or cash-based funds, while keeping longer-term assets invested for growth. This structure ensures there’s always a pool of stable assets to draw from when life happens, without disrupting the long-term investment strategy that underpins retirement income. 

5. Longevity risk: a 20+ year retirement 

As people live longer, longevity risk has become a major factor in retirement planning. A retirement that lasts 25–30 years means your savings must stretch further, so it’s important to consider whether your fund growth can sustainably support your drawdowns over time.

Multi-asset funds such as the Prisma range, combined with strategies such as Personalised GuidePath and ARF Rebalancing or maintaining a short-term cash reserve, can help keep your portfolio aligned with your goals.

Longer retirements also make inflation more impactful, so choosing investments with built-in indexation or inflation-linked growth potential becomes essential. And because medical and care costs typically rise in later life, it’s worth reviewing your Health Insurance cover and setting aside funds for future health needs or using part of your tax-free lump sum to future-proof your home. 

Longevity risk isn’t just about living longer - it’s about ensuring your finances can sustain the lifestyle and security you want for as long as you need them. 

6. Medical expenses and health-related shocks 

Medical needs in retirement can vary widely, and the financial impact can be significant. Long-term care costs, ongoing medical treatments, and sudden health events can reshape a retirement plan overnight. Rising healthcare concerns mean retirees need protective buffers built into their financial strategy - not only to cover immediate expenses, but also to safeguard long-term income sustainability.

A sensible approach is to maintain a dedicated healthcare contingency fund within your ARF or savings, alongside broader emergency reserves. 

Layering in guaranteed income: in mid-to-later retirement, you can choose to convert part of your Approved Retirement Fund (ARF) into an annuity to lock in a guaranteed income for life - reducing pressure on your remaining investment portfolio. 

It’s also worth reviewing your protection cover: Serious Illness or Cancer Cover can provide a lump sum that helps manage the financial shock of a diagnosis, while those still working should ensure their Income Protection remains in place up to retirement age to protect their earning power before they retire. 

Retirees may also choose to use part of their tax-free lump sum to fund health-related home adaptations or private healthcare needs.

Retirement planning

Retirement planning is not just having a pension or choosing between an ARF or annuity - it’s a tailored, ongoing advice journey. 

With the right structure, tools and advice - from funding to decumulation to legacy you can build a retirement that is personal and can support your financial future.

Retirement isn’t just about numbers - it’s having reassurance, clarity and confidence. Whether you’re early in your career or fast approaching retirement, now is the right time to reflect, plan, and take control of your financial future. 

Discover a wealth of resources on zurich.ie designed to help you plan for a rewarding retirement, no matter how complex your journey may be. 

*Source: CSO.ie, Household Finance and Consumption Survey 2023