The ARF is an investment vehicle used post-retirement to facilitate the provision of retirement income and also ongoing investment. Essentially once the Retirement Lump Sum has been drawn down the balance of funds can be re-invested in an ARF an AMRF or a combination of both.
At retirement if you do not have pension income of greater than € 12,700 pa then you will have to invest € 63,500 in an AMRF. The capital in the AMRF must remain untouched until age 75. One can draw down the growth over and above this figure but the original capital must remain intact. With any surplus over the initial € 63,500 you can invest in an ARF. The ARF can be set up to provide you with an income in retirement. At present there is an enforced annual withdrawal of 5% of funds under € 2 million and 6% per annum on funds over € 2 Million. You can elect to withdraw any amount over this figure but all of this will be taxed as income in the normal course of events. The ARF withdrawals can be used efficiently to minimize the levels of tax paid in retirement as the income facility is largely flexible.
The figures given are those currently applying as at 01/02/2013
Company Pension – Executive or Occupational Pensions Company Pension – Self Administered Retirement Trusts Personal Pensions – Self Directed / Traditional Pensions PRSA's ARF's Annuities
Meritus Wealth Management Ltd. t/a Meritus, Meritus Private Clients is regulated by the Central Bank of Ireland
Directors: Gabriel McCarthy, Shane O'Connor
Company Registration No : 334476. Private Company Limited By Shares. Registered Office : Suite 111, NSC Campus, Mahon, Cork, T12 XY2N
