About Approved Retirement Funds – (ARF’s)
It used to be the situation that having built up a pension fund the option at retirement was to “purchase an income” with the pension fund that had been built up over the years and take a limited tax free cash lump sum
Many people thought this was unfair as it did not take into account the different personal situations that people can find themselves in at retirement, for example; married or single, in good health or otherwise, independently wealthy so don’t need an income and many other valid reasons for greater choice.
The rules changed and ARF’s were introduced so that, subject to certain revenue rules, people retiring now can still opt for purchasing the income but also consider an ARF as an option.
What This Means
When your pension fund has been accumulated in a Qualifying Pension Fund Plans and you meet the revenue rules, you can opt for an ARF.
- The qualifying list is as outlined below and if you have used more than one plan, all can be accumulated into one ARF;
- Personal Pension Plans
- Personal Retirement Savings Plans (PRSA’S)
- Additional Voluntary Contributions (AVC’s)
- Occupational Pension Schemes
- Buy out Bonds
ARF & Investments
An ARF is an investment and as this may be your last decision to make regarding your income in retirement, then extreme caution is advised before making any decision
The value of your investment may go down as well as up.
Past performance is not a guide to future performance.
Ambit Advice & Revenue Rules
We are qualified to give advice on ARF’s & the Revenue Rules so there is no need to make the decision in isolation.
If you already have advice, a second opinion on such an important decision doesn’t cost anything and you get greater confidence in whatever decision you finally make.
