ARFs/ ARMF- An Approved Retirement Fund, or ARF, is a fund in which you re-invest your pension as a lump sum, when you retire. An ARF has a lot of flexibility. This means that you can withdraw as much as you like from it when you like. Most people prefer to withdraw money from their ARF regularly, to give them an income.

To invest in an ARF at retirement, there are two conditions.

1. You must have had one of these pension policies:

  • Personal Pension Policy - for self-employed people or those who do not have a pension through their employment.
  • Executive Pension Policy - for company directors and business owners.
  • Additional Voluntary Contributions (AVCs) - where you top up your group pension with extra payments.
  • Personal Retirement Savings Account (PRSA) - taken out in your name while you are in your job.
  • Buy Out Bond - a transfer of benefits from a previous pension scheme.

2. Subject you having a guaranteed income of 12,700 per annum, you can invest the proceeds of your PRSA AVC fund in an Approved Retirement Fund (ARF) after you retire.

ARFs are investment funds into which you can invest the proceeds of your pension fund on retirement. An ARF will provide you with greater control of your income in retirement as you can decide the level and frequency you wish to draw income down from your fund, as and when you need it.

A further benefit of an ARF is the level of investment control it gives you. Our clients have the full range of investment options from secure and capital guaranteed funds to adventurous funds. Any interest or capital growth that your fund earns remains free of DIRT tax.

Unlike traditional retirement plans, an ARF remains your property when you die, so your dependants will still benefit and family wealth is transferred.

We will help you review your options in order to establish an ARF tailored to your needs. Withdrawals from your ARF attract tax at your marginal rate so we will help review your tax affairs to establish the most efficient way to draw down your money.

An Approved Minimum Retirement Fund ('AMRF') is similar to an ARF except yhat the capital in the AMRF cannot be drawn down until the individual is aged 75 years and the minimum for the ARF does not apply to the AMRF.


Financial Services