Flexible retirement is fast becoming one of the most important financial trends in Ireland, as more people move away from the traditional model of leaving the workforce at 65.

New research from Independent Trustee Company (ITC) shows that 69% of financial advisors have seen increased interest in phased retirement over the past year, signalling a cultural shift in how Irish workers are approaching the later stages of their careers.

Phased retirement allows individuals to gradually reduce working hours while maintaining some income and financial independence.

It’s particularly attractive to professionals in their 50s and 60s looking to ease out of demanding roles without sacrificing financial security.

“More clients are asking how they can reduce hours, access pensions early, and maintain a comfortable lifestyle without the stress of full-time work,” says Nick Charalambous, Managing Director of Alpha Wealth.

“Flexible retirement puts control back in their hands.”

Charalambous outlines five key financial considerations before making the move:

1. Can You Afford It?
   Estimate your monthly income needs, factoring in both essentials and lifestyle spending. Early retirement years can be surprisingly expensive due to travel, hobbies, or health costs.
2. When Can You Access Your Pension?
   Access varies. Some occupational pensions can be drawn from age 50, while PRSAs and personal pensions are typically available from age 60. Early access can reduce long-term income, so timing matters.
3. Reassess Your Pension Strategy
   Partial drawdowns or continued contributions may suit your goals, but all options carry tax and growth implications. Understanding your pension’s flexibility is crucial.
4. Understand the Tax Implications
   Taking a pension while still earning could bump you into a higher tax bracket. Strategic planning around tax-free lump sums and income timing is essential.
5. Plan for Long-Term Sustainability
   Drawing down early and reducing contributions can impact your retirement income years down the line. Forecasting future needs is vital to avoid financial shortfalls.

Phased retirement won’t suit everyone, but for those with multiple pension pots or flexible work options, it offers a more balanced, personalised path to retirement.

With careful planning, it can deliver the ideal blend of freedom, income, and wellbeing.