Retirement lump sum calculator | Finnegan Maguire Financial Advisors
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How much of your lump sum comes out tax free?

A quarter of your fund can usually be taken as cash. The first €200,000 of it is free of tax across your lifetime, and the next slice is taxed at 20%.

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€200,000 tax free, across every pension you hold
20% on the next €300,000
Marginal rate on anything above €500,000
The basics

Lifetime limits, not per pension

The bands below apply across every pension you hold, and they count what you have already taken in earlier retirements.

Tax free the first €200,000 of lump sums
20% on the next €300,000
Marginal rate above €500,000

Some occupational schemes calculate the lump sum on salary and service rather than a straight quarter, and occasionally that produces a better result. You also do not have to take the full quarter — every euro taken out is a euro no longer growing.

Try it

What comes out, and what is taxed

Put in your fund and anything you have already taken as a retirement lump sum in the past.

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Illustrative only and not personal advice. Figures are checked against Revenue and revised after each Budget. The tax-free amount of €200,000 and the 20% band of €300,000 are lifetime limits covering all retirement lump sums. The marginal rate is shown at 40%. Your own scheme rules may calculate the lump sum differently.

Before you decide

Worth thinking about

The lump sum is the best day of the process, and also the one decision people make fastest.

01 You do not have to take the full quarter. If you have no immediate use for the cash and no tax reason to take it, leaving more invested may serve you better.
02 It is a lifetime limit. If you have taken a lump sum from an earlier retirement, it counts against the same €200,000.
03 The order matters. With several pensions, sequencing which you draw and when can change the tax you pay.
04 What is left has to produce an income. Model the drawdown before you decide the lump sum, not after.
Book a call

Pick a date and time that suits you.

No sales pitch, just a conversation about what you already have, what it is heading for and whether we can improve it. You will get a written summary either way.

Cian O’Sullivan Director and Financial Adviser, Finnegan Maguire
30 minutes Phone or video call, no charge
Rather just ring? Call 0818 44 55 66 or email go@splash.ie
What we advise on

Everything we look after

Mortgages Buying, moving or switching First-time buyers Approval, deposit and Help to Buy Pensions What yours is actually heading for Retirement The lump sum, the tax and the income Life and income cover Insuring what pays for everything Specified illness A lump sum on diagnosis Savings and investments Money that is not going into a pension Inheritance The tax your family pays For business owners Getting money out of the company Keyperson cover Protecting the business itself Stepping back or selling You get one exit, no practice run Find an old pension From a job you left Mortgages Buying, moving or switching First-time buyers Approval, deposit and Help to Buy Pensions What yours is actually heading for Retirement The lump sum, the tax and the income Life and income cover Insuring what pays for everything Specified illness A lump sum on diagnosis Savings and investments Money that is not going into a pension Inheritance The tax your family pays For business owners Getting money out of the company Keyperson cover Protecting the business itself Stepping back or selling You get one exit, no practice run Find an old pension From a job you left