The final decade is when decisions compound. Here’s a clear, time-boxed roadmap to land smoothly.
10 years out (age ~55 – 57)
- Consolidate old pensions (avoid duplicate fees, get oversight).
- Increase AVCs – typically peak earning years (Revenue age-related limits apply).
- Glidepath investments: begin de-risking near-term money while keeping long-term growth.
- Trace retained DBs and request statements (see Ch.2 for DB transfer values).
Micro-win example
Declan raises AVCs from €300 to €800/month at 55. At 4% growth for 10 years → ~€115,000 extra at retirement.
5 years out
- Get detailed benefit projections (DB accrual, DC values, PRSAs).
- Build a cashflow model with inflation, taxes, and healthcare scenarios.
- Sketch your lump-sum plan (debt clearance, emergency fund).
3 – 2 years out
- Decide your drawdown blend: ARF vs annuity vs hybrid.
- Align portfolio to bucket strategy (see Ch.14):
- 0–3 years: cash/short bonds
- 3–10 years: balanced
- 10+ years: growth
- PRSI check (see Ch.4) and correct gaps if possible (voluntary contributions timing matters).
Final 12 months
- Confirm retirement date with employer and providers.
- File lump sum / ARF / annuity paperwork.
- Tax prep: verify credits, rate band splitting, USC treatment.
- Estate tune-up: will, beneficiaries on ARFs/life policies, EPA (see Ch.13).
- Lifestyle pilot: trial your “retirement week” (structure, hobbies, volunteering, part-time work).
Day 0 and first 12 months
- Set initial withdrawal rate (e.g., 3.5–4.0%).
- Fund Year 1 from cash bucket; schedule quarterly top-ups.
- Book rebalancing date and a 12-month review (budget, markets, health, goals).
Two full timeline case studies
Deirdre (57 → 67), mortgage-free, target spend €50k
- 57–60: consolidates pots, +AVCs, sets 2-year cash bucket.
- 62: cashflow shows a €10k gap; increases AVCs and defers travel splurge to ages 68–75.
- 65: derisks near-term bucket; keeps long-term equity sleeve for inflation.
- 67: retires on State Pension + DB €28k; ARF supplies €22k; total €50k. Guardrails in place.
Shane (60 → 66), renter, target spend €45k
- 60: finds two preserved DBs; declines transfer for the larger (good indexation), transfers the smaller to PRSA for flexibility.
- 63: sets 24-month cash buffer; runs healthcare shock scenario (€20k/yr for 3 years).
- 66: buys a small annuity to cover rent + utilities; ARF for the rest. Keeps 40% equities for long-term inflation.
Key Takeaway
Treat the last decade as a project plan: raise AVCs, align investments to time horizons, pre-wire your tax and paperwork, and pilot the lifestyle you actually want.
