Nearing Retirement

Pension Plans tailored specifically to your needs when retiring soon

Options to consider when retiring soon:

Your tax-free lump sum
Best time and procedure to drawdown your pension

How can benefits be taken?

First 25%

Lump sum – Tax free up to €200,000

Next €63,500

  1. Approved Minimum Retirement Fund (AMRF)
  2. Annuity


  1. Taxable Lump Sum
  2. Approved Retirement Fund
  3. Purchase Annuity

Tax Free Lump Sum at Retirement

First €200,000

Tax Free
Lump Sum

Next €300,000

Subject to standard rate income tax

Any other Lump Sums

Subject to higher rate income tax

Retiring Soon Options

Lump Sum

When retirement benefits are taken, the individual can first take up to 25% of the fund as a lump sum, which is tax free subject to a limit of €200,000 on all tax-free lump sums taken by that individual from all pension arrangements since 7th December 2005.

The Balance can then be used for –

  1. Buying an Annuity
  2. Investing in an ARF or AMRF
  3. Taking a taxed lump sum

Approved Minimum Retirement Fund (AMRF)

This is an investment fund which grows entirely tax free. Up to age 75, you can opt to (but is not obliged to) take an annual taxable withdrawal of up to 4% of the value of the AMRF.

At age 75, the AMRF turns into an Approved Retirement Fund (ARF), or if earlier.. the individual starts to receive pension income payable for his or her lifetime of at least €12,700 per year, or dies.


An annuity is a single premium insurance policy where, in return for a lump sum payment, the selected life insurance company guarantees to pay a specified level of regular income for entire life of the individual insured by the policy.

A single life annuity ceases on the death of that individual, apart from outstanding payments under the guarantee period (if applicable).

An annuity can provide a continuing payment of part or all of the annuity to a nominated person, typically a spouse, following the individual’s death; this is called a joint life annuity or an annuity with a reversion, i.e. part or all of the annuity ‘reverts’ to another individual following the death of the individual who took out the annuity.

E.g. James is now 65 years old and a RAC fund of €200,000. Taking €50,000 lump sum, purchasing an annuity for €150,000. This guarantees €6000 for the rest of his life, with a guarantee of 5 years. If James dies 3 years later, €6000 per year will be paid to James’ estate for two years. Or pay the outstanding to his estate.

Approved Retirement Fund (ARF)

An Approved Retirement Fund is a personal investment account into which an individual can (in certain circumstances) transfer part of their retirement fund, instead of using those funds to buy an annuity or take as a taxable lump sum. The balance of an ARF on death is paid to the holder’s estate.

The ARF owner can withdraw funds from the ARF whenever required. There is no maximum rate of draw down from an ARF. An individual can withdraw the full balance in an ARF at any time.

Any withdrawal made during the lifetime of the ARF holder is subject to income tax under PAYE, USC and Class S PRSI (if under 66)

ARF Offers:

  1. Tax free investment returns.
  2. Option of lower annual taxable withdrawals.
  3. Ability to pass the balance of the ARF to a spouse’s ARF without any immediate tax charge.

have you decided on a pension?

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We would like to assure our customers that although this Worldwide Pandemic has struck our Nation hard, we are still here for our new and existing customers. All phone calls and emails will be dealt with accordingly.

In the unfortunate circumstance that a customer contracts COVID-19 and dies, our life policies would pay out in line with our usual claims philosophy.

All Consultations will be held by Phone or Online via Computer/Smart Device to remove face-to-face interactions and keeping in line with social distancing guidelines recommended by the Government.

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