Retiring early—it’s a dream that inspires meticulous financial planning, lifestyle transformations, and sometimes corner-cutting sacrifices. But how common is early retirement in Ireland? And how does it measure up against global trends and past decades? Let’s dive into the numbers, challenges, and what this means for those eyeing a head start on freedom.

One Fifth Think It’s Possible—But Few Make It Real

A study by Royal London Ireland surveyed 900 Irish workers and found just 21% believe they’ll be able to retire at, or before, age 60 based on their current finances. While many aspire to “retire early,” often as early as 50 or 60, only a small fraction see it as realistic. In fact, most expect to work through their 60s—53% expect to retire at 65 or 66, and a further 20% anticipate working until 70.

Only 3% believe they can retire by 55, although workers aged 35–44 show slightly more confidence, at 6%. The disconnect between aspiration and reality is clear: early retirement is still a pipedream for most.

Ireland in Global Perspective

Retirement trends shift based on national policy, life expectancy, and socio-economics. The OECD projects that average effective retirement age is rising and will continue to do so in coming decades. Globally, retirement expectations are stretching upward.

Meanwhile, many advanced economies face ageing populations and fewer workers supporting more retirees. For instance, in 1970, there were over 5 working-age people per retiree in OECD countries; by 2010, that had fallen to just over 4, and it’s projected to shrink to 2.1 by 2050.

This “dependency ratio” crunch makes early retirement more costly for both individuals and governments as pension and healthcare systems are stretched thinner.

Are More of Us Retiring Early Than Before? Not So Fast

Historical data from the US reveals a roller-coaster trend: average retirement age dipped from 65.5 in 1970 to around 62.4 by the 1990s, then crept back to 64.9 by 2020. Longer life expectancy and shifting workforce dynamics are behind these swings.

In Ireland, the most common retirement age remains 65, aligning with the State Pension age. Despite increasing talk of early retirement, the numbers show very few people actually make it happen.

Meanwhile, globally, early retirement has lost some of its shine. A Bain & Company report shows a resurgence of older workers, reversing earlier trends where spikes in retirements were believed to herald a permanent shift. Older workers are now staying in—or returning to—the workforce in rising numbers.

Why Early Retirement Remains Elusive—and Still Desirable

Barriers

  • Financial strain: Saving enough to live comfortably for potentially decades before State Pension kicks in means aggressive saving or income alternatives are essential.
  • Tax and housing costs: High property prices and taxation in Ireland put extra pressure on those planning early exits.
  • Longevity risk: Retiring early could mean funding 30–50 years of living expenses—exposure that compounds market, health, and inflation risks.

Why People Still Want It

  • Quality of life: More time for travel, hobbies, and family.
  • Improved health and life expectancy: Many in their 50s and early 60s remain fit, mentally sharp, and eager to explore new chapters.
  • FIRE movement: Younger generations, especially Millennials and Gen Z, are embracing “Financial Independence, Retire Early” (FIRE). They aim to accumulate 25–30 times their annual expenses, often retiring in their 40s or even 30s.

Key Figures and Takeaways

  • 21% of Irish workers think they can retire at 60 or earlier, but most anticipate working to 65 or beyond.
  • Only ~3% expect to retire by 55.
  • Globally, retirement ages are slowly rising. The support ratio is halving in OECD countries—from ~5 working-age adults per retiree in 1970 to just 2 by 2050.
  • Ageing populations and changing economies are pushing more people to stay employed longer or return to work. Early retirement, once a growing trend, is now slipping for many.

Is Early Retirement Still Within Reach?

Yes, but it requires planning, discipline, and flexibility. Here’s how to give yourself a fighting chance:

  1. Define your target age (say, 60 or earlier) and calculate how much you’ll need.
  2. Boost savings aggressively—max out pensions, leverage investment returns, and cut unnecessary spending.
  3. Build multiple income streams—rental property, side hustles, part-time consulting.
  4. Plan for healthcare, inflation, and longevity—your retirement may span decades.
  5. Use smarter funding strategies—gradual withdrawal, phased part-time work, or semi-retirement.
  6. Consider cashing in your pension – access your pension from the age of 55.

Early retirement may no longer be the norm, but for the ambitious and the determined, it can still be a life-transforming reality. The key is recognising the challenges and out-planning them.

Your future self will thank you for starting today.