An Approved Retirement Fund (ARF) or Approved Minimum Retirement Fund (AMRF) allows you to keep your pension fund investment after you retire, as well as giving you an income in retirement.
Taking an income from your Friends First Approved Retirement Fund (ARF) or Approved Minimum Retirement Fund (AMRF) is straightforward.
How much can I take?
There is a minimum income you must take from your ARF each year, which is dependent on your age. If your total ARF funds are under €2 million, you must withdraw:
- 4% of the value of your fund, if you are over 60.
- 5% of the value of your fund, if you are over 70.
If your total ARF funds exceed €2 million, you must take out 6% of the value of your fund per year.
Once you have taken your minimum withdrawal, you can take any additional income as you need it.
An AMRF is treated slightly differently. The maximum income you can take is 4% of your AMRF Fund per year.
Tax on withdrawals
You have to pay income tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on any money you take out of your ARF and AMRF.
Making a withdrawal
Talk to your Financial Broker
If you withdraw too much of your funds too quickly there is a risk that you may use up all of your pension fund during your retirement.
We strongly recommend that you talk to your Financial Broker about the best way to manage your ARF and AMRF.