What Is An Annuity?
An annuity is a financial product whereby after taking your tax-free lump sum from your pension fund you elect to allow the insurance provider / pension provider (or another insurance provider / pension provider) to retain ownership of your residual pension fund and in return they will give you a guaranteed income for the rest of your life.
Sometimes this annuity income will also allow a partial income payment for your spouse in the event of your subsequent death.
The obvious advantage here is the security of income but the disadvantage is that you will have to live a long and healthy life before you eventually get back the value of your residual fund by way of income over your lifetime. There are various add ons to annuities such as a partial spouse payment in the event of your death but the basic concept stays the same in that purchasing an annuity involves giving up ownership of your residual pension fund in return for a guaranteed income.
For many people the notion of giving up ownership of the pension fund leads them to ask the question – is there another option?
The answer is Yes– you may prefer to elect to use your money/funds to invest in an ARF – an (Approved Retirement Fund).
For information, please call Joanne on 01 5267770 or 053 9110380.
Alternatively, fill in the form and we will contact you by phone or email to see if we can help.
"I had a number of pensions that I was ready to drawdown but I was very confused as to how I should do this, and what I needed to do. ARF Ireland took control of the process for me and dealt with my existing pension providers to get me my tax free lump sum from the pension, and also set up my ARF & AMRF."
- DAVID, RETIRED COMPANY DIRECTOR (I.T.)
"As a conservative investor, ARF Ireland created an ARF investment portfolio for me that gives the potential for reasonable growth during periods of financial market highs but also protects me from periods of market turmoil…they have also always fulfilled their initial promise to me to review my ARF with me on a regular basis."
- CONOR, RETIRED GP