Hi Bob2018,
Thanks for providing the further information; you’ve received good advice from Sarenco and others.
My sense is that you would not be obliged to set up an AMRF (i.e. the €63,500 ancillary fund) because your State pension income would exceed €12,700. I helped an uncle of mine a while back who wanted to access his AMRF and the Qualifying Fund Manager (i.e. the ARF/AMRF administrator) included the increased pension for a spouse in the guaranteed specified income calculation.
In terms of your overall position, you’re in decent nick. One further question though, what type of pension is it? Personal Pension, PRSA, or occupational pension scheme set up by an employer?
Your fund is worth €380k, so you get €95k tax-free, with €285k into your ARF. You’re then forced to take out 4% a year, rising to 5% at age 71. 4% is €11,400, which is more than you need, and the whole €31,400 is tax-free due to the age exemption. Your plan to save some of it is rock solid in my view. Sarenco’s more of an investment person, but I’d be looking at a medium risk option in the Zurich Prisma/Pathway, Standard Life MyFolio or Irish Life MAPS suites of funds with as cheap an annual charge as I can get. I’d use some of my tax-free lump sum to keep five years’ worth of supplementary income in cash (say €50k), I’d blow around €25k of it on a nice holiday plus a few home improvements etc, and then I’d put the other €20k plus my future savings in a similar investment strategy.
Best of luck,
Gordon