ARF-Approved Retirement Fund
The transfer of a matured pension fund into an ARF is an option for; holders of personal pension plans, proprietary directors, PRSA owners and also members of defined contribution (DC) occupational pensions schemes.
There are other conditions in place which determine the value which can be transferred to an ARF. These conditions centre on the risk that the retiree may withdraw too much too soon from the ARF and not having enough funds to cover their later retirement years. Before being able to purchase an ARF, it is a requirement that the individual has some other source of guaranteed pension income. As per the Finance bill 2013, the minimum level of guaranteed pension income is €12,700. If applicable, the state pension can be used in calculating this income level.
If the minimum guaranteed pension income condition cannot be met, the individual may purchase an AMRF for €63,500.
If you are unsure if you qualify to invest your pension fund in an ARF please contact us to schedule a review of your retirement options.
Contact us today, to review the best retirement benefits package for you.
See more >> AMRF
Maintain Capital Value
The benefit of using an ARF is that your accumulated fund continues to be invested and grows tax free in capital value, after you retire. Similar to when the pension investor needed an investment strategy while accumulating their pension fund up to retirement, another strategy is now required to continue to grow the pension fund while in retirement.
Recent changes to tax legislation have impacted the way ARF’s are taxed. Now, even if there is no drawdown of income from the ARF, a tax liability will be assessed each year on an assumed drawdown value.
The major benefit of an ARF over an annuity contract is the ability to transfer capital to an individual’s estate, after the death of the retiree. Unlike an annuity contract that ceases upon the death of the retiree (unless purchased with a guaranteed term), the balance of the ARF is passed on to the deceased retiree’s estate.
Depending on your pre retirement pension arrangements and your individual circumstances, your post retirement arrangements may include an ARF and an annuity contract.
See more >> Pension Annuities