An Approved Retirement Fund (ARF) is a flexible post-retirement investment vehicle available in Ireland, designed to provide individuals with greater control over their pension funds upon retirement. Upon reaching retirement age, individuals can transfer their pension savings into an ARF, where the funds can continue to be invested and grow tax-free. This allows retirees to manage their retirement income according to their needs, withdrawing money as required while keeping the remainder invested.
The key benefits of an ARF include the ability to choose from a wide range of investment options, such as equities, bonds, and property, and the flexibility to adjust withdrawals based on changing financial needs. However, it is important to note that withdrawals from an ARF are subject to income tax, and there are minimum withdrawal requirements from the age of 61, currently set at 4% of the ARF value annually. Additionally, any remaining funds in the ARF can be bequeathed to heirs, making it a versatile tool for retirement planning and legacy purposes