Option with an ARF

Bass Reeves · 11-10-2023 9:16pm #1

My better half is thinking of retiring next year. She has her pension in two parts a DB and a smallish PRSA. Her DB will not provide her with a year and a half of a lump sum so she intends to take part of the PRSA to top up her lump sum.

She will be left with a money in her PRSA. When she puts it into the ARF can she control the investment. At present we have a bond paying a decent return. Her pension advisor say she can only put it into an ARF fund provider. She was thinking of putting part of it ( about 30%)into the bond as it's return is better than any pension fund return. The bond would pay the income into the pension and wound provide the cash for the statutory draw down percentage

12-10-2023 11:09am

She can leave the balance in the PRSA and it becomes a Vested PRSA to age 75 and then she'll have to ARF it.

Bond?? What type of bond/fund? Is it with a Qualifying Fund Manager? Have tou asked the product provider of the 'bond' if it can accept maturity pension ARF payments? What return has the 'bond' had and over what period?

Bass Reeves · 12-10-2023 11:41am

The QFM can be sorted. Bond has a degree of risk to it. However we are willing to accept that risk as we can afford to. Return is substantially above pension average returns.

I presume if she leaves it in a vested PRSA she has to take 4% out if it every year after she makes a draw down from it

The J Stands for Jay · 12-10-2023 1:10pm

What do you mean by bond? If it's a government bond, a self directed ARF could purchase a similar bond. If it's an investment bond from a life assurance company, then they would likely offer the same fund through their ARF.

Bass Reeves · 12-10-2023 1:17pm

https://www.boards.ie/discussion/comment/121227969#Comment_121227969

No it's a company bond not in any way related to me.

The J Stands for Jay · 12-10-2023 1:33pm

https://www.boards.ie/discussion/comment/121228002#Comment_121228002

Do you mean it's debt issued by a company?

Option with an ARF

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