MTK
With reference to PRSI Applied to ARF/AMRF Income: Just to relate my experience about deriving income from these products.
I Retired at 65 yrs.in 2014. After careful deliberation I opted for the ARF/AMRF retirement funds, from which to derive an income.I could have gone the Annuity route, but interest rates were and are still Low. So after the set up I was aware of the deductions to be made on the Income. So PAYE ,USC & PRSI were deducted.The Deduction Class for PRSI is "
S", and is deducted at the Rate of
4% on the Gross Income.This class of PRSI entitles your PRSI Record to show it is a contribution for the purpose of counting them towards The State Contributory Pension. In other words they are the equivalent of Class
"A" Contributions. The Payslip from the company providing your payments will show the Class of PRSI Being used.
1.I think you can commence ARF Draw down at age 60 (Check Revenue website).
2.Request a Statement of your PRSI record from Dept. of Social Protection (DSP) and check to see if your Class
S Contributions are being recorded properly.You can go online and request this statement.
www.welfare.ie and follow the Links.
3.When you reach the age of 66 The deductions of PRSI cease, and by that stage you should be receiving The State Pension from then on.Provided your contribution record is all in order of course. Check you age to see in what year you will be likely to receive it, as the rules changed recently.
4.Your Payslip from then on, 66, will Show the Class of PRSI you are now on. This will be Class
"M". It is Zero Rated, so no deductions are made. It is important that if you keep drawing from your ARF fund, your PRSI record is still updated. This can be important since certain benefits Like Eye Tests,and Dental checkups are available, for Free, currently.
I hope the foregoing will be of some use to you. Please note future Budgets may change what is outlined above.