On retiring your pension, you can take up to 25% as a lump sum of which

  • The first €200,000 is tax free and;
  • The next €300,000 is taxed at 20%

The balance must be allocated as follows:

  • Either an annuity income providing a guaranteed income of at least €12,700 pa or
  • An Approved Retirement Fund (ARF)/Vested PRSA

Note that from age 61 a minimum annual withdrawal of 4% of the value of the fund is imputed. This increases to 5% of the value once you reach the age of 70.