You worked hard for your money – make your money work hard for you.

There are two types of approved retirement fund (‘ARF’):

  • About ARF’s -An ARF is a retirement contract in which you can invest all or part of your pension fund as a lump sum.
  • About AMRF’s – An AMRF is a similar kind of investment to an ARF, but it is a safety net required by the Government if you don’t have sufficient guaranteed income.

The 2013 Finance Act resulted in significant changes to ARF’s and AMRF’s. Contact Paddy Mahony or Andrew Nevin on 01 498 0005 to discuss how these changes may impact you.

About ARF’s

An ARF is a post retirement contract in which you can invest all or part of your pension fund as a lump sum. You can make withdrawals from your ARF at any time. Your ARF will avail of tax free growth however any withdrawals will be subject to PAYE. On death the value of your ARF would be transferred to your spouse tax free. Any subsequent withdrawals would be liable to PAYE. In order to avail of the ARF options you must have, at retirement, a guaranteed income for life of €12,700 per year. If not you must invest €63,500 in an Approved Minimum Retirement Fund (AMRF). An AMRF is similar to an ARF however you cannot access your fund until age 75.

Why Choose for ARF’s

  • 100% allocation.
  • Low Annual Management Charges.
  • Excellent Fund Choice.
  • Flexible options to take regular income.
  • Excellent Customer Service.
  • Deposit Options

What are the charges?

There will be no entry charges or bid/ offer spreads. There is an annual management charge being a percentage of the fund. This remunerates the broker, pension provider and fund manager.

When can benefits be taken from an ARF?

You can withdraw funds from your ARF when you require. You may make regular withdrawals or single ad hoc withdrawals from your ARF. The minimum efficient amount to take as income each year is usually 4%. This can be paid annually or monthly. An income of at least 4% is applicable to ARF holders who are 60 or over for the full tax year. Withdrawals may also be taken from an AMRF however the maximum withdrawal is 4% of the AMRF value per annum.

What benefits are payable on death?

A transfer of ARF/AMRF assets after your death is taxed as follows (under current tax rules):

ARF/AMRF inherited by Income tax due Capital Acquisitions Tax due
Surviving spouse None where transferred into an ARF of the surviving spouse. None
Child aged 21+ at date of your death Yes. Income tax at 30%. None.
Child aged less than 21 at date of your death. None. Yes. Normal inheritance tax rules will apply.