When you reach your retirement age, and you’ve taken your tax free lump sum, although annuity rates are at higher levels again, more and more retirees are choosing the ARF option, as a more tax efficient option. This option has been made better by the abolishment of the AMRF, whereby €65,500 no longer needs to be invested until age 75 with ARF option at chosen retirement age.
Benefits of ARF (Approved Retirement Fund)
- The value of the fund can remain invested in a fund and can grow of fall in line with how the fund performs. Its important to chose your investment wisely when retiring 75% of your pension after tax free lump sum is taken. This is because in most cases a retirees has stopped working limiting income capacity, so investments that are high risk investments aren’t advised for ARF investors. We adise across many suitable investments for our mature clients ranging from Government Bonds, Capital Secure products and life insurance multi-asset investment to meet desired investment risk profile.
- The ARF can be used to buy an annuity at a later time if annuity rates improve or buying an annuity suits your needs.
- The value of your ARF passes completely over to your spouse who can continue to benefit financially, if you suffer an untimely death.
