Post Retirement


  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

When you retire you have a number of options to choose from, these are outlined below-

1. 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. Up to €200,000 can be taken tax-free (August 2012). 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.

2. 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 ‘shop around’ at retirement – and buy an annuity from any authorised annuity provider.

3. 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 €18,000 per annum. If you don’t you will have to invest €119,800 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 to take a withdrawal of a certain amount each year. If you don’t, we will do it on your behalf and send it to you. 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. An individual can only ever have one AMRF. 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from the original capital invested, but investment growth (if any) can be withdrawn at any time.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.

4. 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.