What is an Approved Retirement Fund?
After many years of saving for your retirement, you are finally here. It is time to relax and enjoy your retirement. But before you can do that there is still one important decision to make about your pension fund.
There are several options available to you, one of which is an Approved Retirement Fund (ARF). You can invest all or part of your pension fund in an ARF and decide on what risk-level you wish to take by choosing a fund or funds to invest in. You can move between funds at anytime during your retirement. An ARF allows you to withdraw an income on either a regular or ad hoc basis, which is subject to taxation.
In order to qualify for an ARF you must have a minimum guaranteed income of €12,700 per annum or have invested €63,500 into an AMRF.
Why you should talk to us?
- Clear independent ARF advice.
- You can invest your pension in a wide range of funds, including capital guaranteed options.
- Tailored ARF investment advice to match your financial needs and objectives in retirement.
- Transparent charging structures.
- Dedicated pension manager.
Should you purchase an Approved Retirement Fund?
While an ARF might be a clever option they are not suitable for everyone. While there are tax advantages to going down the ARF route and the potential of future gains too. However, an ARF does not give a guaranteed income for life. Below we have set out some of the advantages and disadvantages of an ARF.
• When you die the value of your fund passes to your estate.
• Your decision to purchase an ARF can be reversed to purchase an Annuity.
• There is the possibility of future gains and your pension fund.
• You have a lot of control over your pension fund.
• You have access to a very wide range of investment assets.
• There may be a level of investment risk with your ARF.
• If your annual withdraw is more than the investment returned your ARF will reduce.
• If the investment return is poor or you live a very long time your ARF might run out.