Your Retirement Options

A guide from Ark Life

 Committed to Plain English
There is no financial jargon in this booklet and everything you need to know is written in an upfront and honest way.

We are delighted to have received the ‘Best in Plain English’ Award from the Plain English Campaign. This award
recognises our contribution to communicating clearly. For this award, we were chosen ahead of 12,000 other
organisations from 80 countries.

There is no financial jargon in this booklet and everything you need to know is written in an upfront and honest way.

The information and figures quoted in this booklet are correct as at November 2014 but may change.
Contents
02 Introduction

03 When can I retire?

05 What options are available when I retire?

- Retirement lump sum
- Buy a pension for life
- Reinvesting your pension fund
- Take as a taxable cash sum
- Open market option

11 What are my options if I have a personal pension?

13 What are my options if I have a PRSA?

15 What are my options if I have a company pension?

18 What are my options if I have paid Additional Voluntary Contributions (AVCs)?

21 What are my options if I have a Personal Retirement Bond (PRB) / Buy Out Bond?

24 My options - the advantages and disadvantages

1
Introduction
Retiring can be daunting enough without
worrying what to do with your pension We recommend you get financial advice about
your retirement options before you make any decisions.
fund. You have worked hard to save for your
retirement so its important that you take
some time to consider your options.

We have designed this booklet to help you

decide what your next step with your pension
fund should be. This booklet will look at the
different types of pension plans and the
retirement options available to each pension
type. We also compare the advantages and
disadvantages of each option to help you
with this important decision.

2
When can I retire?
When you can take your retirement benefits Personal Retirement Savings Account (PRSA)
will depend on the type of pension plan you If you have a PRSA, you can take your retirement benefits at any age
between 60 and 75. You do not actually have to retire and stop working.
have. As soon as you reach age 60, you can take your benefits and continue
working.
Personal pension There are some circumstances when you can take your benefits before
age 60. You may take your benefits if:
If you have a personal pension plan, you can take your retirement
benefits at any age between 60 and 75. You do not actually have to You are seriously ill and due to your ill health you have to
retire and stop working. As soon as you reach age 60, you can take your permanently give up work;* or
benefits and continue working.
You work in specific occupations where it is normal to retire before
There are some circumstances when you can take your benefits before 60. These include professional sportspeople, pilots and fishermen; or
age 60. You can take your benefits if:
If you are an employee, you can take your benefits from the age of
You are seriously ill and due to your ill health you have to 50 if you stop working for that company. This must be verified by a
permanently give up work;* or copy of your P45 for that employment. If you own or control more
than 20% of the shares in the company you will also have to sell
You work in specific occupations where it is normal to retire before
those shares in order to retire early. This option does not apply if
60. These include professional sportspeople, pilots and fishermen.
you are self-employed, a sole trader or a partner.
*Medical evidence will be needed before an ill health retirement claim
can be paid.

3
Company pension
If you are a member of a company pension you can take your
retirement benefits at your normal retirement age, this will have been
set by the scheme trustees between ages 60 and 70.
There are some circumstances when you can take your benefits before
your normal retirement age. You may take your benefits if:
You are seriously ill and due to your ill health you have to
permanently give up work;* or
You may be able to take early retirement from age 50 if you
stop working and the trustees of your pension scheme and your
employee agree. If you own or control more than 20% of the
shares in the company you will also have to sell those shares in order
to retire early.

Additional Voluntary Contribution (AVC)

If you are a member of a company pension scheme you may have
paid additional voluntary contributions (AVCs). Your company pension
scheme and AVCs will be linked and the retirement age for both will be
the same. You must take your benefits from your AVC at the same time
as you take your benefits from your company pension.

Warning: If you invest in this product you will not have

access to your money until age 60 and/or you retire.

*Medical evidence will be needed before an ill health retirement claim

can be paid.

4
What options are available when I retire?
There are four options available when you Retirement lump sum
retire. The options available to you will depend At retirement everybody has the option of taking a retirement lump
sum. Most people take the maximum amount allowed under this option.
on your personal circumstances and the type The level of retirement lump sum you can take will depend on the type
of pension you have. We have dedicated of pension plan you have and your personal circumstances. The level
of retirement lump sum which may be available under each type of
a section in this booklet to the retirement pension plan is explained in the ‘What are my options?’ sections.
options available to each pension type. In this The current maximum retirement lump sum you can receive tax free
section we discuss each option in general. from all your pension plans is €200,000. Retirement lump sums between
€200,000 and €500,000 will be subject to standard rate income tax
(currently 20%). Any retirement lump sums greater than €500,000
will be taxed at your marginal rate, the Universal Social Charge (USC),
PRSI (if applicable) and any other taxes or government levies applicable
at that time will also be due. Both the €200,000 and €500,000 limits
include all retirement lump sums you have received since 7 December
2005. Your financial adviser can give you more information about what
you are entitled to.

5
Buy a pension for life (annuity) You don’t have to make any of these decisions until you actually retire
You should discuss these options with your financial adviser. The option
When you hear people talking about a pension this is what they usually you choose will affect the cost of the pension income for life and the
mean. A pension for life also known as an annuity is a regular income level of income you will receive.
paid to you for the rest of your life. Your regular income stops when you
die unless you choose an option which continues this payment, more In the past, some pension plans offered a Guaranteed Annuity Rate
details on these options are outlined below. You will have to pay income at retirement. This can be a very valuable option. The type of annuity
tax at your highest rate on withdrawal, USC and any other taxes or available is generally set and any changes mean you would lose the
government levies due at that time on any pension income you receive. guarantee. You should check your contract to see if you have this
guarantee. If you do, you should compare the guaranteed rate to
There are a number of extra options available; your financial adviser can
current annuity rates on the market.
help you decide which options best suit your needs;

A pension paid to you for at least five years or 10 years. This

means that if your die during this period, we will continue to
pay the pension to your dependents to the end of the five or
10 year period. This is called the guaranteed period.
A pension which will increase. This means your pension
increases each year, to take account of inflation, when it is
being paid. Your payments may increase by either 3% or 5%,
depending on Revenue limits.
A pension for your husband or wife, registered civil partner
or dependent. This means if you die we will pay a pension to
them until they die.
You can arrange for your income to be paid every month, every
three months, every six months or every year.
If you have the option to invest in an ARF or AMRF this means
that any remaining money not paid to you when you die can be
paid to your estate. This option is only available if you take your
retirement lump sum as 25% of the fund or for AVCs.

6
Reinvesting your pension fund Minimum withdrawal amounts
With certain types of pension plans you may be able to reinvest some The Finance Act 2006 introduced an obligation on all qualifying fund
or all of your pension fund in an Approved Retirement Fund (ARF) and managers to deduct tax from ARF funds every year as if you had
withdraw money as you want, depending on certain restrictions. taken a minimum withdrawal. The Finance Act 2012 extended this
tax requirement to vested PRSAs. Each December, we will review any
If you have a PRSA you can continue investing in your PRSA after
withdrawals you have taken during the year. If you haven’t taken any
you take your retirement lump sum. Your PRSA will become a vested
withdrawals, or if the withdrawals you have taken are lower than the
PRSA and will be treated the same as an ARF or Approved Minimum
minimum withdrawal amount, we will pay you the minimum withdrawal
Retirement Fund (AMRF).
amount less income tax at your highest rate, the USC, PRSI (if
If you decide to continue investing in the PRSA as a vested PRSA or applicable) and any other taxes or government levies due at the time.
transfer to an ARF or AMRF, it is important to remember that the value We will only take the minimum withdrawal amount from your ARF and
of your fund may be reduced over time if the level of withdrawals is high vested PRSA from the year you turn 61.
and the investment return is not high enough to maintain this. When
The current minimum withdrawal amount is 5% of the value of your
you die, any money left in your fund will pass through your personal
ARF and vested PRSA funds (less the restricted fund) at the end of each
representatives to your estate. Your spouse or registered civil partner
year. Please see page 9 for more information on vested PRSAs and the
may have the option of continuing to invest in a separate ARF.
restricted fund.
What is an ARF? You will have to appoint a nominee Qualified Fund Manager (QFM)
if the total value of your ARFs and vested PRSAs (less the restricted
An ARF is a separate plan that allows you to continue investing after
fund if you have one) is more than €2,000,000. The nominee QFM is
you retire. With an ARF you manage and control your retirement fund
responsible for making sure a withdrawal of 6% is taken from the total
and can invest in a wide range of different investment funds. You can
value of your vested PRSAs (above the restricted amount) and ARFs. We
also make withdrawals, as you need them. You also pay income tax at
will pay you a minimum withdrawal of 5% as outlined above unless we
your highest rate, the USC, PRSI (if applicable) and any other taxes or
agree to act as nominee QFM.
government levies due at the time on all withdrawals. You can leave the
rest of the fund to your dependents when you die.

7
Approved Minimum Retirement Fund (AMRF)
Example of how an AMRF and ARF work together
If you have chosen the ARF route but do not have a guaranteed pension
income for life of at least €12,700 a year, you must invest €63,500 in Your retirement fund €500,000
an AMRF (or the rest of your fund if it is less that this amount) or buy a
pension with the same amount. Retirement lump sum (for example, 25%) €125,000

The main difference between an AMRF and an ARF are the restrictions Rest of retirement fund €375,000
placed on taking withdrawals from your AMRF fund. You can withdraw
Invest in an AMRF (if you do not have a guaranteed €63,500
any gain you make within the AMRF over and above the original
pension income of €12,700 a year)
amount you invest.
Invest the rest in an ARF €311,500
However, until one of the following happens (whichever is first) you
cannot make withdrawals from the original amount you invested.
Warning: The income you get from this investment may go
You start receiving a guaranteed pension income for life from other
down as well as up.
sources of €12,700 a year, or
You reach age 75. Making regular withdrawals may reduce the value of your fund,
especially if investment returns are poor or you choose a high rate of
withdrawal (or both). It is possible that your fund could run out before
you die. The higher the level of regular withdrawal you make, the higher
the chances are that you will use up your fund in your lifetime. If you do
not have a guaranteed pension income that will maintain your current
standard of living during retirement, we recommend that you think
about buying a pension for life before choosing to draw an income from
your vested PRSA or invest in an ARF.

8
Leave your funds in your PRSA Minimum Withdrawal Amount
If you have a PRSA you can take your retirement lump sum and The minimum withdrawal requirement as described on page 7 will apply
leave the balance in your PRSA as a vested PRSA. Depending on your to vested PRSAs over the restricted fund in the same way as ARFs.
circumstances at the time you take your retirement lump sum you may
have to keep up to €63,500 in your vested PRSA – this is called your Warning: If you invest in this product you may lose some or
restricted fund. You will not be able to take any withdrawals on the fund all of the money you invest.
below the restricted fund. You will not have to keep a restricted fund if
you meet one of the following conditions: Warning: The value of your investment may go down as
You receive a guaranteed pension income for life of €12,700 a year; well as up.
or
You have invested €63,500 in an AMRF; or
You have €63,500 in a separate vested PRSA along with any
amount you have invested in an AMRF; or
You have used at least €63,500 to buy a pension for life;
You took retirement benefits from other pension plans in the past
and met the guaranteed income or AMRF requirement in full at that
time.
Anything over your restricted fund will be treated in a similar way as an
ARF (see page 7). When you turn age 75, you will not be able to take
withdrawals from your vested PRSA, however the minimum withdrawal
requirement will apply to the full value of your vested PRSA. If you want
to take withdrawals greater than the minimum withdrawal amount, you
should speak to your financial adviser who can discuss other options
with you.

9
Take as a taxable cash sum Your open market option
Depending on the type of plan you have, you may be able to take You can choose to buy a pension for life from any pension provider. This
the rest of your fund, in one go (after the retirement lump sum). You is called an open market option. Once you know what type of pension
will need to pay income tax at your highest rate, the USC, PRSI (if interests you, you can compare the different levels of income on offer.
applicable) and any other taxes or government levies applicable on this
Your financial adviser can help you with this and you can also see the
lump sum at the time.
National Consumer Agency’s website [Link]. It is also possible to
See the ‘What are my options?’ sections which will show if this option is buy an ARF or AMRF product using the open market option.
available to you.
Maximum Pension Fund
These limits may change in the future.
The maximum pension allowed at retirement from all sources for tax
purposes is €2,000,000. This is called the standard fund threshold
(SFT). Any pension fund over €2,000,000 will be taxed at the higher
rate (currently 40%). This tax is taken from the pension fund before
your retirement benefits are paid. If you have pension funds over this
amount you should talk to your financial adviser.
If the value of your pension funds were greater than €2,300,000 on
7 December 2010 or greater than €5,000,000 on 7 December 2005
you may have applied for a personal fund threshold (PFT) from the
Revenue Commissioners. The Revenue would have issued you with a PFT
Certificate which replaces the SFT. If you did receive a PFT Certificate
you will need to send a copy of that certificate to your pension provider
when you take your retirement benefits.

10
What are my options if I have
a personal pension?
Your options when you retire Retirement Lump Sum:
With a personal pension you can take a retirement lump sum of up to
Your retirement fund 25% of your fund.

The rest of your fund

Retirement lump sum
If you have no other pension benefits and the total value of all your
pension benefits, after taking your retirement lump sum payment, is less
than €20,000, you may be eligible to take the balance of your fund as
With the remaining balance a once-off taxable payment. This is called the Trivial Option. For more
(subject to meeting €63,500 AMRF/pension information regarding this option, please speak to your financial adviser.
requirement, If applicable)
The other options available to you depend on whether you have a
guaranteed pension income for life of at at least €12,700 a year.

Buy a pension ARF Taxable Cash Sum

for life

11
Will you have a guaranteed pension income for life of €12,700 when You will have to pay income tax at your highest rate, USC, PRSI (if
you retire? applicable) and any taxes or government levies on any pension income
you receive or withdrawals from an ARF or AMRF.
No These limits may change in the future.

Buy a pension for life

Or
Invest the first €63,500 in an AMRF or use to buy a pension
for life and invest the rest in an ARF, taking withdrawals as
you want
Or

Invest the first €63,500 in an AMRF or use to buy a

pension for life and take the rest as taxable cash

Yes
Buy a pension for life

Or

Invest in an ARF (taking withdrawals as you want)

Or

Take as a taxable cash sum

12
What are my options if I
have a PRSA?
Your options when you retire Retirement Lump Sum:
With a PRSA you can take a retirement lump sum of up to 25% of your
Your retirement fund fund.

Retirement lump sum The rest of your fund

If you have no other pension benefits and the total value of all your
pension benefits, after taking your retirement lump sum payment, is less
With the remaining balance than €20,000, you may be eligible to take the balance of your fund as
(subject to meeting €63,500 AMRF/pension a once-off taxable payment. This is called the Trivial Option. For more
requirement, If applicable) information regarding this option, please speak to your financial adviser.
The other options available to you depend on whether you have a
guaranteed pension income for life of at least €12,700 a year.
Buy a pension
for life PRSA or ARF Taxable Cash Sum

If you have a PRSA AVC please see Sections 6 and 7 for your retirement
options.

13
Will you have a guaranteed pension income for life of €12,700 a year You will have to pay income tax at your highest rate, USC, PRSI (if
when you retire? applicable) and any taxes or government levies on any pension income
you receive or withdrawals from a vested PRSA, ARF or AMRF.
No No withdrawals can be made from your vested PRSA after age 75,
Buy a pension for life however the minimum withdrawal requirement will still apply. If you
want to continue making withdrawals after age 75 you will need to
Or transfer the balance of your fund to an ARF.

Leave up to €63,500 in your vested PRSA as a restricted These limits may change in the future.
fund, or invested in an AMRF, or use to buy a pension for life.
You can then leave the rest of your fund in the vested PRSA,
invest in an ARF (taking withdrawals as you want) or take as
taxable cash.

Yes
Buy a pension for life
Or
Leave the fund in your vested PRSA as an ARF
(taking withdrawals as you want)

Or
Invest in an ARF (taking withdrawals as you want)

Or
Take as a taxable cash sum

14
What are my options if I
have a company pension?
The options you have for your pension fund Option A
from a company pension will depend on
whether you have a defined contribution or Retirement lump sum of up to 1.5 x final salary
defined benefit company pension scheme.
Defined Contribution Company Pension Buy a pension for life
Almost everyone in a defined contribution company pension scheme
will have the option to choose from either Option A or Option B
(explained in this section). The trustees of your company pension Retirement Lump Sum
scheme will tell you what options are available to you. The retirement lump sum available under a company pension plan will
depend on your circumstances and how long you have been working for
Defined Benefit Company Pension Scheme the company.
The options available will depend on the rules of your company pension
The maximum retirement lump sum allowed is 1.5 times (150%) your
scheme. Typically you must take your retirement benefits under Option
final earnings. To be able to take the maximum allowed, you will need to
A. The trustees of your company pension scheme will tell you what
have worked with your current employer for between 20 and 40 years
options are available to you.
depending on your circumstances and any other pension benefits you
may have.

15
The trustees of your company pension scheme will tell you the Will you have a guaranteed pension income for life of €12,700 a year
maximum retirement lump sum you can take based on your salary and when you retire?
service.
No
The rest of your fund
Buy a pension for life
The balance of your pension must be used to buy a pension income for
life. Or
You will have to pay income tax at your highest rate, USC, PRSI (if Invest first €63,500 in an AMRF or use to buy a pension for life
applicable) and any other taxes or government levies applicable at that and invest the rest in an ARF, taking withdrawals as you want.
time on any pension income you receive.
If you paid AVCs into your company pension scheme or into a separate Or
AVC scheme or PRSA AVC you will have further options with your AVC
funds, please see section 7.
Invest the first €63,500 in an AMRF or use to buy a pension
for life and take the rest as a taxable cash sum.
Option B

Yes
Retirement lump sum Buy a pension for life
You can take a retirement lump sum of up to 25% of your
Or
company pension and AVC fund.
Invest in an ARF, taking withdrawals as you want.

Or
The rest of your fund
Take the rest as a taxable cash sum.
The other options available to you depend on whether you have
a guaranteed pension income for life of at least €12,700 a year.

16
You will have to pay income tax at your highest rate, USC, PRSI (if
applicable) and any taxes or government levies on any pension income
you receive or withdrawals from a vested PRSA, ARF or AMRF.
If you paid AVCs into your company pension scheme or into a separate
AVC scheme or PRSA AVC you will have further options with your AVC
funds, please see section 7.
These limits may change in the future.

17
What are my options if I have
paid Additional Voluntary
Contributions (AVCs)?
You may have paid AVCs into your main The trustees of your company pension scheme will tell you the
maximum retirement lump sum you can take based on your salary and
scheme, a separate AVC plan or into your service.
PRSA. The AVC fund will help to make up the For example, if you are allowed 150% of your final earnings as a
shortfall between the maximum benefits you retirement lump sum and your company pension gives you 100%, you
are allowed under your main scheme and can use your AVC to make up the other 50%.

what your main scheme actually provides. If you took 25% of your company pension plan as a retirement lump
sum then you can also take 25% of your AVC funds as a retirement
AVC benefits must be claimed at the same lump sum.
time you are claiming benefits from the main
company pension scheme. The rest of your fund
Your options with the rest of your AVC fund depend on whether you
Retirement lump sum contributed your AVCs to your main scheme, to a separate AVC or to a
PRSA AVC plan.
The amount you can take as a retirement lump sum under your AVC will
depend on the rules of your company pension plan. This will depend
on your circumstances and how long you have been working for the
company.
If you took a retirement lump sum based on your salary and service the
maximum retirement lump sum allowed is 1.5 times (150%) your final
earnings.
18
Option 1 Yes
If you contributed AVCs onto your main scheme or a separate AVC
plan Buy a pension for life
You will have a different set of options depending on whether you have
Or
a guaranteed pension income for life of €12,700 a year.
Will you have a guaranteed pension income for life of €12,700 a year Invest in an ARF, taking withdrawals as you want.
when you retire?
Or

Take the rest as a taxable cash sum.

No
Buy a pension for life

Or

Invest first €63,500 in an AMRF or use to buy a pension for life

and invest the rest in an ARF, taking withdrawals as you want.

Or

Invest the first €63,500 in an AMRF or use to buy a pension

for life and take the rest as a taxable cash sum.

19
Option 2 Yes
If you contributed AVCs into a PRSA plan
Buy a pension for life
You will have a different set of options depending on whether you have
a guaranteed pension income for life of €12,700 a year. Or

Will you have a guaranteed pension income for life of €12,700 a year Leave the fund in your vested PRSA as an ARF,
when you retire? taking withdrawals as you want.
Or
Invest in an ARF, taking withdrawals as you want.
No
Or
Buy a pension for life
Take the rest as a taxable cash sum.
Or

Leave €63,500 in your vested PRSA as a restricted fund, or You will have to pay income tax at your highest rate, USC, PRSI (if
invested in an AMRF or use to buy a pension for life. You can applicable) and any taxes or government levies on any pension income
then leave the rest of your fund in the vested PRSA, invest in an
you receive or withdrawals from a vested PRSA, ARF or AMRF.
ARF (taking withdrawals as you want) or take as taxable cash.
No withdrawals can be made from your vested PRSA after age 75;
however the minimum withdrawal requirement will still apply. If you
want to continue making withdrawals after age 75 you will need to
transfer the balance of your fund to an ARF.
These limits may change in the future.

20
What are my options if I have
a Personal Retirement Bond
(PRB) / Buy Out Bond?
Personal Retirement Bonds (PRBs) also known Defined Contribution Company Pension
If your PRB was set up after February 2011 and came from a defined
as Buy Out Bonds are taken out by trustees of contribution scheme, you most likely will be able to choose from either
company pension schemes when an employee Option A or Option B. Otherwise unless you were a proprietary director
leaves service or when the pension scheme is who controlled more than 5% of the shares in the company you must
take your retirement benefits under Option A. Your pension provider will
wound up. They are personal contracts taken tell you what options are available to you.
out in the employee’s own name and provide Defined Benefit Company Pension Scheme
retirement benefits in line with the original If your PRB came from a defined benefit company pension scheme
company pension scheme. you must take your retirement benefits under Option A. If you were a
proprietary director who controlled more than 5% of the shares in the
company you can choose either Option A or Option B. Your pension
The options you have from your PRB will provider will tell you what options are available to you.
depend on whether your PRB came originally
Option A
from a defined contribution or defined benefit
pension scheme.
Retirement lump sum of up to 1.5 x final salary

Buy a pension for life

21
Option A Option B
Retirement lump sum
The retirement lump sum available under a Personal Retirement Bond
will depend on your circumstances and how long you were working for Retirement lump sum
the company. You can take a retirement lump sum of up to 25% of your
The maximum retirement lump sum allowed is 1.5 times (150%) your Personal Retirement Bond and AVC fund.
final earnings. To be able to take the maximum allowed, you will need
to have worked with your employer for a minimum of 20 years when
claiming your benefits at normal retirement age. This maximum 1.5
The rest of your fund
times final earnings must take into account other pension benefits you
may have. The other options available to you depend on whether you
have a guaranteed pension of at least €12,700 a year.
Your pension provider will tell you the maximum retirement lump sum
you can take based on your salary and service.
Will you have a guaranteed pension income for life of €12,700 a year
The rest of your fund when you retire?
The rest of your pension must be used to buy a pension for life.
You will have to pay income tax at your highest rate, USC, PRSI (if No
applicable) and any taxes or government levies applicable at the time on
any pension income you receive. Buy a pension for life

If you paid AVCs into your company pension scheme or into a separate Or
AVC scheme or PRSA AVC you will have further options with your AVC
funds, please see section 7. Invest first €63,500 in an AMRF or use to buy a pension for life
and invest the rest in an ARF, taking withdrawals as you want.

Or

Invest the first €63,500 in an AMRF or use to buy a pension

for life and take the rest as a taxable cash sum.

22
Yes
Buy a pension for life

Or

Invest in an ARF, taking withdrawals as you want.

Or

Take the rest as a taxable cash sum.

You will have to pay income tax at your highest rate, USC, PRSI (if
applicable) and any taxes or government levies on any pension income
you receive or withdrawals from a vested PRSA, ARF or AMRF.
If you paid AVCs into your company pension scheme or into a separate
AVC scheme or PRSA AVC you will have further options with your AVC
funds, please see section 7.

These limits may change in the future.

23
Your options – the advantages
and disadvantages
Option Main advantages Main disadvantages

Retirement lump sum You do not have to pay tax on your retirement lump You will have less funds available to buy an annuity or
sum up to a limit of €200,000. You will pay standard re-invest if you take a retirement lump sum.
rate income tax on any retirement lump sum between
€200,000 and €500,000. These are lifetime limits.

You can use a lump sum straight away for something

you’ve always wanted.

You can reinvest your lump sum to provide you with

further income throughout your retirement.

Pension for life You have the security of a pension income for life. Once you have bought a pension for life you can not
change your mind. Your income is fixed and you can not
You can choose to pay your income to your spouse, change it.
registered civil partner or dependents if you die.
Once you die your pension for life dies with you, unless
You are not at risk from changes in investment markets as you buy (a) a guaranteed payment period or (b) the
if you’d reinvested your fund. This income is set for life. investment protection option or (c) a pension for your
spouse, registered civil partner or dependents.

24
Option Main advantages Main disadvantages

Leaving your funds in You do not need to take a new plan out so there are no You can only choose from the range of funds available under
your vested PRSA new charges. the original PRSA.

You can continue to have flexibility and control over You will not have a pension for life, the withdrawals you
your fund throughout your retirement. make from your PRSA will reduce your retirement fund. This
is particularly the case if your fund grows at a slower rate
You can withdraw money as you want up to age 75 as than you are withdrawing from it.
long as you have provided for a guaranteed pension
income for life or an AMRF. Otherwise you will have to As you are continuing to invest, your fund may be open to
keep up to €63,500 in a restricted fund. ups and downs in the markets.

You can pass your PRSA fund on to your estate if you No withdrawals can be made from your vested PRSA after
die after you retire. age 75. If you want to continue making withdrawals after
age 75 you will need to transfer the balance of your fund to
an ARF or use it to purchase an annuity.

ARF/AMRF You have flexibility and control over your fund Your income is not guaranteed, you could use up all your
throughout your retirement . fund.

You can choose what funds you want to invest in and If your fund grows at a slower rate than you’re withdrawing
many companies allow you to change funds at any from it, your fund will run out.
time.
As you are continuing to invest, your fund may be open to
You can withdraw money from an ARF at any time. ups and downs in the markets.

You can pass your ARF or AMRF on to your estate when If your original plan was a PRSA, you have the same option
you die. to withdraw under it until age 75 without needing to take a
new ARF plan out and you may be subject to new charges.

Taxable cash sum You have direct access to a lump sum as soon as you Unless you have another source of income, you have no
retire. money to fund you throughout your retirement.

25
For ARF/AMRF/vested PRSA products please note:

Warning: The value of your investment may go down as

well as up.

Warning: If you invest in this product you may lose some or

all of the money you invest.

Warning: The income you get from this investment may go

down as well as up.

For AMRF products please note:

Warning: If you invest in an AMRF you will not have access

to your initial investment amount until age 75.

26
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 At Ark Life we are taking steps to reduce our
impact on the environment. Small changes,
taken together, add up to a greener world.

How to get in touch

Call us
1890 252 364 / +353 1704 1244
8am to 8pm Monday to Thursday
10am to 6pm on Fridays
9am to 1pm on Saturdays

Fax 01 242 2952

Email customerservice@[Link]

Post Ark Life Assurance Company dac

PO Box 129, Dublin 1

In the interest of customer service we will record and monitor calls.

The information in this booklet is correct as at August 2016 but may change.
Ark Life Assurance Company dac is regulated by the Central Bank of Ireland.
Ark Life Assurance Company dac, PO Box 129, Dublin 1.

ILA 11277 (REV 03-18)