Once you reach retirement you may be able to choose what you do with you retirement fund depending on your individual circumstances. One of these options may be an Approved Minimum Retirement Fund (AMRF) or an Approved Retirement Fund (ARF).
Key Features of Approved Retirement Funds
Proprietary directors in company retirement schemes, holders of personal pension plans and AVC savers no longer have to use their retirement fund to purchase an annuity at retirement. Individuals can now take 25% of the accumulated retirement fund tax free, and invest the balance in an Approved Retirement Fund, which is structured as a tax exempt portfolio.
Before you can invest in an Approved Retirement Fund and/or take the balance of your fund as a taxable lump sum, you must invest €63,500 in an annuity or an Approved Minimum Retirement Fund. (This requirement is waived if you are aged 75 or over, or have a guaranteed lifetime income of €12,700 per annum).
Benefits
All investment returns from an ARF are tax-free. In the event of death the residual value of your portfolio can be passed to your dependants preserving your accumulated capital. You will have a dedicated Portfolio Manager with whom you can agree a personal investment strategy and you will have complete control over how your retirement fund will be managed. At Complete Financial Your Portfolio Manager is supported by a team of experts people and we offer quality advice to ensure that you benefit from the maximum tax efficiencies available.
Eligibility
You can invest the following funds in an ARF:
The proceeds of a personal pension plan.
The value of retirement benefits not taken as a tax free lump sum at retirement, arising from an occupational pension scheme provided by a company of which you are a proprietary director, i.e. be able to control more than 5% of the shares in the company at any time within the three years prior to retirement.
The value of AVC benefits at retirement not taken as a tax free lump sum.
The ARF is suitable for investments of €300,000 or more