- Before you invest in an ARF you must meet one of the conditions below (unless you have inherited your ARF or AMRF from your spouse or registered civil partner).
You must set aside €63,500 in an AMRF until you reach 75
Or, you must buy a guaranteed pension for life (annuity) with this money (€63,500)
Or, you must have a guaranteed pension income for life of €12,700 a year
- You are required to withdraw a minimum amount from your ARF every year. This minimum amount is currently 4% from the year you turn 61 (or 60 if your birthday is the 1st of January) and 5% from the year you turn 71 (or 70 if your birthday is the 1st of January) where the total value of your ARFs and Vested PRSAs is less than €2,000,000 (6% otherwise.)
- If the withdrawals you have paid are less than this, we will pay you the balance at the end of the year. This withdrawal will reduce the value of your fund.
- Depending on investment returns it is possible that these withdrawals could result in your fund reducing to zero before you die, the plan would then end.
- You must take out an AMRF if you have chosen the ARF route but do not have a guaranteed pension income for life of at least €12,700 a year already in place or have not used €63,500 to buy a pension for life.
- The main difference between an AMRF and an ARF is that, until you are 75 years old or you become in receipt of the required guaranteed pension income from other sources, you are not required to make a minimum withdrawal from an AMRF each year.