A million in a pension and cash rich.

Wife retires next year. What's the best pot to draw retirement income from?

Live off the savings and allow the pension pot to continue to grow tax free? At least for a few more years anyway.
Or leave the savings as they are (State Savings) and buy an ARF/Annuity next year with the pension fund?

I saw a comment recently that suggested that it's more tax efficient to live off savings from an inheritance perspective but are there other factors to consider?

I think the inheritance perspective is only if the pension hasn’t been touched/drawn down from when the holder dies.

Tbh, given you must draw 4% from an ARF, I’d be looking at how to minimise tax by a) breaking up the pension pot into multiple PRSA’s so some are left untouched, and b) drawing down a 4% that’s below your tax threshold (ie size the ARF pot accordingly) and topping that up from post-tax savings. Otherwise your savings sit there doing nothing while you’re taxed on your pension drawdowns.

In this case I’m proposing to leave the pension undrawn down for a few years post retirement and pre ARF/ annuity purchase. It’s currently comprised of two separate pots both employer schemes with IL. Roughly €750k and €250k.

Yeah, you’re good so. 4% of 750k is 30k so probably below tax threshold, unless you have other sources of income as a couple.

Edit - actually, plus 2x state pension at some point, and do I recall an annuity purchase you shared info on recently? Might not hurt to split the 750 down a little bit.