ARF/AMRF
No I haven't let the cat walk across the keyboard.
These letters could have a major impact on your retirement.
ARF stands for Approved Retirement Fund. This is a fund, in which you can invest all, or part, of your pension fund as a lump sum.
Can I make withdrawals from my ARF fund?
Yes , you can do so at any time. You must make a minimum of 5% of the ARF fund value annually. Your fund avails of tax free growth. However, payments from the fund are subject to PAYE tax.
What happens to the fund when I die?
The value of the ARF on your death, can be transferred to your spouse. Withdrawals by your spouse, would of course attract similar PAYE considerations.
Is there a minimum value to avail of the ARF?
Yes. You must have at retirement stage, a guaranteed income for life of €12,700 per year. Otherwise, you should consider an AMRF.
What is an AMRF?
It stands for an Approved Minimum Retirement Fund. In order to make similar provisions as an ARF you must invest €63,500 in an Approved Minimum Retirement Fund. There is an age restriction of 75 before you can access your funds.
What should I do next?
Planning for your retirement is important. There are lots of decisions to make, which can have a major impact on the value of your retirement fund.
It costs nothing to talk to our experienced experts. It can save you thousands.
Remember, the sooner you start your pension, the more valuable it becomes.
If you have already started your pension, then you should carry out regular reviews, to make sure that it is performing properly, and according to plan.
Book your review today.
