An Approved Retirement Fund, commonly referred to as an ARF, is a retirement product which can be purchased from an Insurance Company. The funds are invested as per the client’s fund choice. Every person is different, and Focus Life & Pensions conducts a thorough Risk Analysis to establish the individuals tolerance or aversion to risk and advises the client in selecting an appropriate fund or range of funds.
The ARF is designed to provide a fund from which the client can make withdrawals to supplement their other retirement incomes such as rental income and the state contributory pension. Once over the age of 60, an ARF is taxed as if the client were taking an annual withdrawal of 5%, so in nearly all cases the client will do so.
Like all investment products, fund values can fluctuate, and ultimately the ARF funds can be completely depleted if the client makes significant withdrawals. The ARF passes to the individual’s estate on death.