does someone who retires early have to pay PRSI?
It would be useful if you would provide some more details regarding the income sources of the early retiree, but in general terms to the best of my knowledge -
PRSI applies up to age 66.
If you taking a pension lump sum, there is no tax at all (income tax, USC, PRSI) up to €200k.
Any lump sum between €200k and €500k is not subject to PRSI either.
A lump sum greater than €500k - unsure. One guide below (Standard Life) says no, another (Aviva) says yes:
[broken link removed]
https://www.aviva.ie/content/dam/aviva-public/ie/pdfs/retirement-guide.pdf
If you are withdrawing from an A(M)RF or vested PRSA, PRSI will apply up to 66.
If you are receiving an annuity, the Pensions Authority website and the below Irish Life guide say that no PRSI is payable:
(Note: the Standard Life pensions tax document I linked to above says that PRSI
is levied on an annuity payment which contradicts the other sources I mentioned).