Are you minding your ARF?
Approved Retirement Funds (commonly known as ARF’s) are widely held pension retirement policies. In many circumstances, when you come to retirement, you’ll claim a maximum of 25% of your pension pot tax free, leaving the remaining 75% balance requiring investment into
a. An annuity
b. An ARF (and AMRF where applicable)
c. In some cases a combination of both
The advantages of an ARF at a glance are access to funds (subject to tax rules), flexibility of investment choice and the ability to transfer to your estate upon death.
The key downside to ARF investment is bomb-out risk, the fund is ultimately going to run out, it’s a matter of when, not if. Maximising the duration of your ARF takes planning, it takes appropriate advice, risk analysis, prudent fund selection and more advice, ongoing advice, annually ideally.
At Keenan Financial Planning I provide such a service where all fees and commissions are completely transparent from the outset.
If you are an ARF holder and are not receiving regular advice, get in touch. Take control over your investment, you’ve worked hard to get it!