Thank you.You can choose a 4 % withdrawal paid monthly. Each month, they will take one twelfth of 4% if the fund value on that day, and apply PAYE etc.
You could also just choose a monthly amount.
Thanks for that information.@Deauville
In November each year I give Zurich a drawdown percentage for the following year. They calculate the drawdown amount for the year in January and I get one twelfth of that each month, less tax etc.
If you are worried about crystallising a loss by drawing down when the funds are doing badly, you could, when determining your fund choices, specify that an amount equal to say two or three years drawdown was to be invested in their cash fund, and that all drawdowns were to be taken from this. Then top this up from the other funds from time to time when they are doing well.
Interesting option that I was unaware of. Thanks for sharing. Also good to know to be aware of the FFPF!Apart from the 4% after age 61 and 5% after age 71, there is total flexibility on when and how much is drawn down from an ARF.
I will be attacked by the forum financial police force for the following, but here goes.
If you reckon that the unit fund prices in your ARF have taken a severe reduction and that this reduction is likely to be recouped you can suspend drawdowns until the expected recovery.
I did this during COVID. The unit funds were reduced by 50% at the begining, when there was widespread panic about the end of humanity as we know it.
On the basis that either we will all be dead in 6 months, or the panic will end and the markets will recover, I suspended drawdowns. Within 6 months all unit price losses had been recovered. I then restarted my drawdowns. There were no charges for doing this. Just a written notice of suspension and restarting to Zurich was all that was necessary.
These are all basic things that any ARF will be able to doInteresting option that I was unaware of. Thanks for sharing. Also good to know to be aware of the FFPF!
Zurich Pensions seems to be getting a few upvotes across several threads recently.
Feel free to post the AMC of any ARF to give us all a bit of transparency in this smoke and mirrors cartel like closed market. The AMC should include the Broker/Financial advisor trail commission which is hidden in most cases and not transparent. Can I suggest that some knowledgable member creates a "ARF Best Buys" Key post ??These are all basic things that any ARF will be able to do
It wouldn't be too easy. The AMC would vary depending on the fund choice, charging structure, broker remuneration, early enchantment penalties and god knows what else. Leaving aside the broker remuneration (they can take anything between zero and maximum), there'd be thousands of permutations.Feel free to post the AMC of any ARF to give us all a bit of transparency in this smoke and mirrors cartel like closed market. The AMC should include the Broker/Financial advisor trail commission which is hidden in most cases and not transparent. Can I suggest that some knowledgable member creates a "ARF Best Buys" Key post ??
The AMC should include the Broker/Financial advisor trail commission which is hidden in most cases and not transparent.
Can I suggest that some knowledgable member creates a "ARF Best Buys" Key post ??
Agree it would be difficult Liam, but if we were to limit the Key Post to Passively Managed Global World Equity funds for 70-75%% of the fund and the balance in cash on an execution only basis (including Broker fees/commission) then at least everyone would have an idea of what is the "Best Buy" and could compare that against what they are offered to see if they see the value in paying a premium / trail for ongoing advise. Take €500K as the gross fund value.As @Fortune says, this would be impractical do do. There are six "High Street" ARF providers, not counting the smaller self-administered ARF providers. Each provider has a wide range of charging options depending typically on the size of the ARF, whether or not early exit charges apply, the commission (initial or trail, if any) being paid to the intermediary, what fund(s) are chosen etc.. The broker gets to decide which of the available options suits their business model. Some brokers provide more services than others. Some brokers charge more than others. The numbers of possible combinations and permutations are huge.
Agree but charges are also important given that the difference can make up 1% PA which makes a 4% draw down 25% more expensive for the uneducated pensioner. Sure early encashment, the ability to "bucket" cash fund withdrawals etc., withdrawal breaks are also interesting topics well worth the discussion.With respect, when we start discussing ARF's it usually ends up in focusing on charges.
Maybe a key post on charges would free up space to discuss other aspects regarding ARF's
Already I've picked up some gems from replies above and I'm sure there are many more gems of wisdom and knowledge out there.
When we go down the road of charges, all else gets ignored.
What think you guys ?
I started looking at the websites for global passive equity funds and the first two I looked at, Aviva and Royal London, both claim their AMC on ARF funds is 0%.Agree it would be difficult Liam, but if we were to limit the Key Post to Passively Managed Global World Equity funds for 70-75%% of the fund and the balance in cash on an execution only basis (including Broker fees/commission) then at least everyone would have an idea of what is the "Best Buy" and could compare that against what they are offered to see if they see the value in paying a premium / trail for ongoing advise. Take €500K as the gross fund value.
Maybe I'll ask Chat GPT to do a Key Post on the topic as I agree it's beyond most mortals as the industry does everything to hide charges in terminology and smoke and mirrors. I'll post the results here.I started looking at the websites and the first two I looked at, Aviva and Royal London, both claim their AMC on ARF funds is 0%. I give up.
Didnt really help. Here's what ChatGPT says:Maybe I'll ask Chat GPT to do a Key Post on the topic as I agree it's beyond most mortals as the industry does everything to hide charges in terminology and smoke and mirrors. I'll post the results here.
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