Retirement has become longer. But what does that mean for your pension?

It’s no secret that people are living longer today than compared with previous generations. Life expectancy in Ireland has seen a significant increase over the past few decades, with women, in particular, typically living longer than men*. As such, a whole new host of questions have arisen for those who will now need to fund longer retirements: Will I need to save more? Will my parents be alright? Might there be anything left for my children?

Addressing these concerns might feel daunting, but the answers tend to come a little easier when a certain amount of rethinking about one’s arc of life is done. Today’s workers formed their expectations about the second half of their lives by observing those of their parents. However, when that becomes unrealistic, new considerations have to be made.

Ensuring your pension pot is enough

The vast majority of those who need to do that rethinking will be strong, healthy, and able to live independently. However, they may also need to continue working for money to make ends meet, which may be necessary due to inadequate retirement savings. Thankfully, this is easily remedied with the right plan. Take, for example, a Defined Contribution pension plan, which is intended to provide you with a means to save for and to be able to retire and maintain an adequate standard of living throughout retirement. This allows you to mitigate the risks associated with a longer life expectancy and ensure that your pension pot works for you.

Another effective strategy is to maximise your savings. It may sound obvious, but this can be done in a number of ways so as not to affect one’s day-to-day life. For example, by increasing contribution rates when receiving a salary increase or a bonus, even a small amount can have a big impact over time. Plus, pensions are designed to grow over the long term, which helps protect your savings from the erosions one might expect from inflation, something regular savings accounts may struggle to do**. In fact, one of the best reasons to add more to your pension is the tax benefit. If you pay a higher tax rate, you could get up to 40% back in tax relief. For example, if you put €1,000 into your pension, it might only be a net cost of €600 to you after the tax relief.

Finally, when you picture your dream retirement, what is it you see? A sports car? A bolthole by the sea? Research shows that visualising one’s retirement in this way helps us all to stick to our goals, because everything feels that bit more real. So, whatever your ideal looks like, keep dreaming of it. Because it’s closer with every month that goes by.

Calculating your pension savings

But, first things first, how does one calculate whether they have enough in their pension pot for retirement?

“I would recommend firstly analysing what percentage of your current income you would ideally like to have in retirement,” says Wayne O’Neill, Executive Financial Planning Manager at Zurich. “This may be 50% or 60%, for example, due to the fact that there may not be as many outgoings in your retirement years. Some important things to consider might be essential costs likely to continue in retirement, like food, utilities, and healthcare, as well as lifestyle costs. Ideally, you would like to be in a position financially to be able to do those things that maybe you haven’t had time to do during your working years, like travel, hobbies, and entertainment.”

Once you have an idea of costs, consideration should be given to sources of retirement income, such as your existing pension pot, the State pension, as well as existing savings and investments, O’Neill continues. “We have some excellent tools available on Zurich.ie, including our pension calculator to help with this analysis. I would recommend consulting your financial advisor as part of this process in order to ensure that you remain on track and address any potential shortfalls.”

It’s easy to forget, but your pension is something that is supposed to work for you, not the other way around. Its allocation is there to align with your age, life stage, and approach to risk. Even in times when it feels like life has taken a curveball–a career break, say, or the times when you’re needed more at home–ways exist for your pension to carry on in the background.

It’s also crucially not something you set once and never revisit. A variety of factors can affect your plan, including markets, the performance of your portfolio, and priority changes. But by revisiting your retirement plan regularly, you can ensure you’re on track and address any changes or issues promptly.

“It is really important to carry out regular reviews with your financial advisor to ensure that you remain on track to achieve your target income in retirement,” O’Neill assures. “One of the possible recommendations may be to switch your pension fund to a different provider. The potential benefits of switching can be a more competitive charging structure and potential for superior fund performance. Both can have a very significant effect on your total fund over the long term. If you are unsure that your current pension provider is the right fit for you going forward, you should contact your advisor to discuss alternative options.”

Get expert pension advice

A pension isn’t just about putting money away every month. It’s about creating the freedom for you and your family to live the way you all want in retirement. Though pensions can feel complicated, the most crucial thing to remember is that you’re not on your own. The beauty of a Zurich pension is that expert advice is available at a moment’s notice.

For those worrying about what the future might bring, especially after big life changes like house moves or career changes, regular check-ins are accessible and encouraged. Because your choices are exactly those; your choices. In the meantime, Zurich offers tools, resources, and expert advice to help you plan with confidence. Start now if you haven’t already got a pension, consider topping up if you do have a pension, plan wisely, and give future-you the retirement you’ve always wanted.

Performance is powerful. Performance is what turns good into great. Performance will make it all worthwhile. At Zurich, we know that when it comes to pensions, performance counts. Topping up your pension can give you the retirement you deserve. Get in touch with a Zurich financial advisor or find a local financial advisor near you with the Zurich Advisor Finder to talk about your options.

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Sources:

*Gov.ie: Health in Ireland Key Trends, 2024

**Performance figures are provided gross of AMC by Longboat Analytics/www.fund-focus.com. Performance figures are based on close of markets prices 30/06/2025. Generally speaking, over the medium to long term, higher risk investments offer the potential for higher returns compared with lower risk investments. Over the period, the (Prisma 4) has shown fluctuations both up and down in price compared with the Bank Deposit/Building Society Account which shows straight line growth, but the investor has been rewarded for this risk through a higher return. The capital in a Bank Deposit/ Building Society/Post Office Account is normally secure.

The information contained herein is based on Zurich Life’s understanding of current Revenue practice as of 1st November 2025 and may change in the future.

This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice.