The key purpose of an ARF is to provide benefits over the duration of your life from retirement and they should be viewed as long-term investments.


THE DAVY ARF SERVICE

  • ARF contract approved by the Revenue Commissioners
  • Full administration service
  • Access to the Davy retirement planning service

TRANSFERS FROM EXISTING PENSIONS

An ARF can accept transfers from a range of pensions, including

  • PRSAs
  • Personal Pensions
  • Occupational Pension Schemes (subject to certain restrictions)
  • Personal Retirement Bonds (subject to certain restrictions)
  • Additional Voluntary contribution (AVC) Schemes

TAX FREE RETURNS

An ARF offers tax-free investment returns

  • No Capital Gains Tax (CGT) when you sell your assets
  • No Exit Tax when you exit a third party investment fund
  • No Income Tax on dividends or coupon payments

FLEXIBLE INCOME WITHDRAWALS

Income withdrawal from an ARF is subject to income tax at your marginal rate. Legislation has introduced an annual taxable ‘imputed distribution’ which will be applied to the value of assets in ARFs. This means that PAYE will be payable on an amount which is assumed to be taken out of your ARF by you.

The imputed distribution amount as at January 2014 is 5% (where combined ARF and vested PRSA assets are greater than €2 million) of the value of your ARF as at 30 November each year.

This imputed distribution is applicable to ARF holders who are 60 or over for the full tax year.

ARF RISKS

There is a risk that the ARF investor who takes regular withdrawals and/or imputed distributions over the life of his/her retirement is exposed to “bomb out” risk, which is the risk that the income needs of an investor may not be met by the value of his/her ARF.

CHOOSING A PENSION ACCOUNT THAT'S BEST FOR YOU

We provide clients with a wide range of personalised pension structures, all of which offer a range of flexible investment options. There are risks associated with pensions, and you should contact a Davy Portfolio Manager for advice to ensure that you choose a pension product that is right for you.

Pension Regulatory Information

Davy is a Qualified Fund Manager to ARFs.

Talk to us about Financial Planning Services

At Davy we know what it takes to build and manage wealth, and what it takes to preserve it. Let us help you plot your course. Talk to a Davy Portfolio Manager about developing your financial plan today.

+353 1 614 8778