An Approved Retirement Fund (ARF) or Approved Minimum Retirement Fund (AMRF) is a personal retirement fund which allows you to keep your pension fund invested after you retire.
You can withdraw money from it regularly to give yourself an income. 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 ARFs 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 ARFs exceed €2 million, you must take out 6% of the value of your fund each 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 each 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.