Approved Retirement Funds (ARFs)

Approved Retirement Funds

  • Giving you greater control over your pension fund in retirement  

>> What is an Approved Retirement Fund (ARF)?
>> Who is eligible to set up an ARF?
>> How does an ARF work?
>> Benefits of an ARF
>> Our unique approach
>> Further information

 

What Is An ARF?

An Approved Retirement Fund (ARF) is a pension policy that allows you to manage and control your own post retirement fund.

This type of pension plan allows a high level of flexibility, enabling you to keep your money invested as a lump sum after you retire. You may also make regular withdrawals to provide yourself with a replacement income. With an ARF you can also bequeath your pension fund to your dependents when you die.

At abm financial advisers our team of investment experts are dedicated to helping you choose the best ARF to suit your individual needs. We are authorised agents for 7 ARF providers in the Irish market which allows us to offer greater choice and product differentiation.

Who Is Eligible To Set Up An ARF?

  • You can only transfer funds into an ARF from certain existing pension arrangements e.g.

Personal Pension Plans, PRSAs, AVCs made by members of an Occupational Pension Scheme, Proprietary Director and members of defined contribution Occupational Pension Schemes, existing ARFs or AMRF individuals who may want more control over how their pension fund is managed.

How Do ARFs Work?

  • An ARF is held in your own name and managed by a Qualified Fund Manager.
  • You can choose to hold more than one ARF in your own name.
  • With an ARF you can choose to invest your money in a wide variety of funds including shares, property, bonds and cash.
  • Your original investment is not guaranteed.
  • With an ARF, when you draw down on the funds, you are liable to pay tax. Your ARF provider then becomes your employer and you pay income tax under PAYE regulations.
  • An Approved Minimum Retirement Fund (AMRF) is another type of ARF, with one exception. You cannot withdraw any of your original capital until you reach the age of 75. Up until this point, you may only withdraw any growth in value the fund produces.
  • In certain circumstances, should you choose the ARF option, it may be mandatory to take out an AMRF in addition to your ARF.

Benefits of an ARF:

√        It provides an alternative to an annuity √        Tax free investment growth
√        Capital preservation for the next generation √        Greater flexibility on when you draw on your fund
√       You can leave your pension fund to your dependents after you die √   You choose how you want to invest your fund

Our Unique Approach

Advice, advice, advice!

  • Advice on your initial choice, i.e. whether to choose the ARF route in the first instance. Perhaps the PRSA option may be worth considering initially – our financial review meeting will address these important issues.
  • Advice on related taxation issues (such as the imputed distribution levied on ARFs) and the direct impact on you.
  • Regular evaluation meetings to review the investment performance of your ARF fund.
  • In line with your risk assessment, advice on how changing market conditions may require you to change your asset allocation and fund choices.
  • Continuing advice on the annuity rates and options available in the market place.

 

How Can I Get Further Information on ARFs?

For further information on taking out an ARF policy, call our team today on 021 427 7000 or email us.

Warning: The value of your investment may go down as well as up.