Approved Retirement Fund & Approved Minimum Retirement Fund
When you choose to retire your pension fund you will be presented with a number of choices. Most clients choose the 25% Tax Free Lump Sum with the next €63,500 going into an Approved Minimum Retirement Fund and the remainder going into an Approved retirement Fund. This appears more complex than it actually is.
You have a Fund of €160, 000
You can take €40,000 Tax Free Lump Sum
The next €63,500 goes into an Approved Minimum Retirement Fund(AMRF) – with certain restrictions
The remaining €56,500 goes into an Approved Retirement Fund (ARF) these funds are available to you but are subject to tax.
An ARF gives you more control over how your retirement fund is managed. An ARF allows you to remain invested in the market with the ability to control your investment and take a flexible income in retirement.
Don’t forget you will also get your State Old Age Pension – you should view your personal pension as a top up of you state pension. Aged 66 and under 80 €237 Aged 80+ €247.00