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ARFS
Retirement gives you the opportunity to make important decisions about how your pension savings can support your future. Understanding the options available can help you choose a retirement solution that suits your needs, lifestyle and financial goals. An Ask Acorn Financial Advisor can help explain your options and guide you through the choices available.
Approved Retirement Funds
An Approved Retirement Fund (ARF) is a tax-efficient investment fund that allows you to transfer some or all of your pension savings after taking your retirement lump sum. An ARF gives you flexibility and control over your retirement savings, allowing you to draw an income when required while keeping the remainder invested. You can choose how your fund is invested and any remaining value may be passed to your beneficiaries, subject to applicable tax rules. As with all investments, the value of your fund can rise or fall and returns are not guaranteed.
Approved Minimum Retirement Fund (AMRF)
An Approved Minimum Retirement Fund (AMRF) was a retirement fund designed to ensure that a minimum level of pension savings remained available to provide future retirement income. Legislative changes mean that AMRFs are no longer available for new retirement arrangements, but existing AMRFs have generally transitioned to ARFs. You may still encounter the term when reviewing older pension arrangements or retirement planning documentation.
Your Questions Answered
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ARFs can be an attractive alternative to pension annuities
The cost of annuities have generally increased due to a better interest rate environment and improved life expectancy.
Your fund passes to your estate on your death.
One of the main differences between an ARF and an annuity is that with an ARF you own your retirement fund. This means that when you die you can leave any remaining funds to your spouse/civil partner or other beneficiaries. If you leave the funds to your spouse or civil partner, the funds can be transferred to an Approved Retirement Fund in their name. There are income tax and inheritance tax implications on the transfer of assets.
You can manage your retirement income to minimise your tax
Those who withdraw regularly may have the option of taking just enough to keep them on the lower rate of tax (currently 20%). This is very attractive if you received tax relief on your contributions at the higher rate (currently 40%). Any withdrawals from your ARF will be subject to income tax, the Universal Social Charge and Pay Related Social Insurance (if you are liable for this). Your tax is automatically deducted from your ARF withdrawals by your ARF provider.
Your fund can remain invested after retirement
By investing in an ARF, your money can remain invested in funds that offer growth potential. The level of this growth, if any, will obviously depend on what fund you wish to invest in and its performance.
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1. Acorn Life
Acorn Life is a 100% Irish owned Life Assurance Company providing protection, pensions, savings and investments to the Irish public. Established in 1989, Acorn Life is the first Irish owned Life Insurance Company to achieve the Guaranteed Irish symbol– Ireland’s most trusted and recognized symbol for quality Irish goods and services. Acorn Life Approved Retirement Funds offer you competitive savings with the minimum of fuss.
2. Your fund will be expertly managed by Acorn Life’s Fund Managers
At Acorn Life we offer many different funds to meet your investment needs and appetite for risk. Our funds are expertly managed on our behalf by international, well-established and professional fund managers. The factsheets for each of our investment funds provide details such as suitability, fund objective, asset allocations and risk levels. To view the factsheets please click here.
3. Value for Money
Acorn Life is committed to providing you with excellent products that offer value for money and meet your individual needs.
4. Flexibility
Your Approved Retirement Fund is flexible. You can switch how your funds are invested as your requirements change. You can choose when and how frequently you take your benefits. This gives you flexibility and control over your investment as you can adapt it to suit your changing needs and circumstances.
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An ARF is available to those who have a pension and have either reached normal retirement age or have taken early retirement. This includes members of an Occupational Pension Scheme (assuming scheme rules allow) and individuals that hold a Personal Pension, Personal Retirement Savings Account (‘PRSA’) or Retirement Bond.
Talk to us today and we can help you assess whether you qualify for an ARF.
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In accordance with the Finance Act 2006, Acorn Life is required to deduct a minimum amount of tax from an ARF policy on a yearly basis as if a withdrawal of 4% or 5% depending on your age (or 6% if the total value of your ARF exceeds €2m) had been taken. This deemed withdrawal is referred to as Imputed Distribution.
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Fund Factsheets
The Fund Factsheets contain important information in relation to each of our investment funds, such as fund objectives, asset allocations and risks
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: This product may be affected by changes in currency exchange rates.
Warning: The income you get from this investment may go down as well as up.
Please note: there is a risk that the ARF could run out in your lifetime. This could happen if you take income at too high a rate, if its investment performance is less than expected, or if you live longer than expected.
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Need extra support?
If you have questions about your existing policy or cover, our customer care team is happy to help. Get in touch by phone or email and we’ll do our best to assist you.
