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Approved Retirement Fund (ARF)

An Approved Retirement Fund (ARF) is a flexible retirement savings option in Ireland, allowing individuals to manage and draw income from their pension funds after retirement.


Key Features

  • Eligibility: ARFs are available to individuals over age 50 who wish to transfer their pension funds into a personal investment account upon retirement.

  • Funding: Funds can be transferred from a defined contribution pension scheme, PRSA, or other retirement savings plans.

  • Income Flexibility: Retirees can withdraw funds as needed, either as lump sums or regular withdrawals, subject to income tax on the amounts withdrawn.

  • Tax-Free Growth: Funds in an ARF grow tax-free while invested.

  • Minimum Withdrawal: Individuals aged 61 or older must withdraw a minimum of 5% of the fund annually. Those under 61 must withdraw a minimum of 4%.

  • Inheritance: ARF funds are inheritable, and beneficiaries may receive the remaining balance, subject to tax.

  • Investment Options: ARFs can be invested in various assets such as stocks, bonds, and property, depending on the provider and the individual's preferences.

 

Conclusion
An ARF provides a flexible, tax-efficient way to manage retirement savings, offering freedom in income withdrawals and allowing for continued investment growth after retirement. It is a popular option for individuals seeking more control over their retirement funds rather than opting for a fixed-income annuity.

Phone: 01 805 8058

Mobile: 087 241 8394

mark@anchorlife.ie

First Floor,

Unit 2 All Saints Park,

Raheny, Dublin 5.

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Anchor Life & Pensions Ltd is authorised by the Central Bank as a Multi Investment Intermediary. Anchor Life & Pensions Ltd is authorised by the Central Bank as Mortgage Intermediary and is regulated by the Central Bank of Ireland.

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