Post Retirement Planning

Post Retirement

When you retire you have a number of options to choose from as set out below:

  1. Retirement Lump Sum
  2. Purchase an Annuity
  3. Invest in an Approved Retirement Fund/Approved Minimum Retirement Fund
  4. Taking an additional taxable lump sum

Roban Financial can assess your situation and guide you through the options to see what would suit your particular situation best.  As there is a minimum requirement to invest at least €63,500 in an AMRF, funds will need to be reinvested and we follow our investment process to appropriately invest such funds for you.

The below is a brief summary of retirement options which will vary on an individual basis depending on the type of pension held.


Your Retirement Lump Sum

The amount of money that you may take as a retirement lump sum will be subject to Revenue limits.  The maximum amount of lump sum that you may take is 25% of the value of your fund at retirement.

If you have an Occupational Pension Scheme you can opt for a Tax Free Lump Sum of 1.5 times final salary subject a maximum of €200,000 provided you have 20 years service completed with the company.

The rest of your fund can then be used to purchase an annuity or invest in an ARF/AMRF or take an additional taxable lump sum, subject to restrictions.  If you take 1.5 times salary, the rest of your fund must be used to buy an Annuity (a Pension).


Purchase an Annuity

You can purchase an annuity which will provide you with an income for the rest of your life – or an income that will continue to be paid, after your death, to your spouse/civil partner.  If you choose to purchase an annuity, you may purchase this from the most competitive provider and we can assist you in this regard by shopping around for you.


Invest in an ARF/AMRF

You can also fully or partially invest the balance of your fund in an Approved Retirement Fund (ARF) – a more flexible arrangement that allows you to continue to invest in funds after retirement and withdraw money as and when you wish. To choose an ARF, you must have a guaranteed pension income of €12,700 per annum. If you don’t, you will have to invest €63,500 in an annuity, an Approved Minimum Retirement Fund (AMRF), or a combination of both.

An ARF allows you to:

  1. Make withdrawals when you want
  2. Receive a regular income from your ARF
  3. Pass on the value of your fund if you die.

You are required under Revenue regulation, to take a withdrawal of a certain amount each year. An Approved Minimum Retirement Fund (AMRF) is similar to an ARF but there is a maximum investment amount for an AMRF, which is set by the Revenue. You cannot withdraw from the original capital invested, but investment growth (if any) can be withdrawn at any time.

An AMRF becomes an ARF:

  1. When you reach age 75;
  2. If you satisfy the minimum guaranteed pension income requirement as set out by the Revenue before age 75; or
  3. If you die before age 75.

An ARF or AMRF can be converted to an annuity at any time.


Taking an additional, taxable lump sum at retirement

You may take an additional taxable lump sum. You will pay income tax on the amount you withdraw from your fund.

Note: You have to satisfy certain conditions to avail of an ARF or an additional taxable lump sum.

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