Time for Retirement?

(Suitable products typicially include Approved Retirement Funds (ARFs) & Annuities)

Now that you are approaching retirement, the time is coming when your main source of income will be your pension. This will come in two forms – the ‘old age pension’ (State pension) and your own private pension.
You will have a number of options at retirement and, within certain Revenue rules, you can combine options in whatever way suits you. The number of pension options available to you at retirement depends on the type of pension you have and whether you are a director with more than a 5% shareholding in the company from which you are retiring.

The four main options at retirement vary, but are broadly:

• Take a tax-free cash lump sum.
• Buy an annuity+.
• Invest in an Approved Retirement Fund (ARF) or Approved Minimum Retirement Fund (AMRF).
• Take a taxed cash lump sum.

+ An annuity is an arrangement under which, in return for receiving the money from your pension plan, the insurance company provides you with a guaranteed regular income for the rest of your life.

This information is based on AIB's understanding of current law, tax and Revenue pratice, September 2008.

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