An important starting point will be to work out total income in retirement. If only the State Pension, then they will not be in the tax net. Therefore (after taking the tax-free lump sum) any income drawdown (assuming 4% pa of the residual - if invested in an ARF or used to buy an Annuity) will also probably not fall into the tax net.
If the individual is getting the full State Pension, they will not be required to invest any residual funds into an AMRF (if aged 66). So the decision may be to invest the residual in an ARF or an Annuity. Based on a residual fund of circa €85,500, the minimum drawdown from an ARF would be c€3,400 ( similar for an Annuity). That would give a total income of c€16,300 (thus below tax threshold).
However if the individual has other income and falls into the tax net then the situation might have to be re-considered.