Approved Retirement Fund (ARF)
When you retire your pension funds you may be entitled to invest the proceeds of your retirement fund into an ARF. You control and manage your pension fund that provides your pension income. You are entitled to withdraw your money from your ARF at any time.
In order to take out an ARF you must first have a guaranteed income of €12,700 per annum from sources other than your ARF fund. If you don’t then the first €63,500.00 of your retirement fund must be invested into an AMRF (approved minimum retirement und) until you reach age 75. You are allowed at anytime to withdraw gains on your AMRF fund before age 75. Once you have fulfilled the AMRF rule you can place the remainder into an ARF.
Te main point to note with these funds is that you are responsible for the investment decisions. You may find that through regular withdrawals and poor investment performance that the fund becomes depleted well in advance of your expected lifetime leaving you with little or no source of income in your old age.
One of the main attractions of ARF is the ability to leave any balance of the ARF account on death to next of kin.