Lynch was named a Knight Commander of the Order of St Michael and St George in the 1981 New Year Honours. He was also made a Privy Councillor in 1977, allowing him to use the pre-nominal letters The Right Honourable. He resigned his parliamentary seat on the grounds of ill-health in 1982, and died of stomach cancer in 1984. Sir Phillip's wife, Leah O'Toole, had been a boarder at St Ann's Ladies' College, Warrnambool and later worked as an occupational therapist and as company secretary and director of Denistoun Pty Ltd. Sir Phillip and Lady Leah Lynch had three sons. Lady Lynch, known for her charity work, died in 2007.