Did standard life issue policies with 20 segments thereby allowing you encash one segment at a time. It's a long time.ago, I can't remember if it was life policies only or not.
does it not depend on how the pension fund looks at retirement, I.e if annuity/arf drawdown is still below tax threshold by leaving the money in the pension, but say you go arf and can take out the 37k a year rather than 25k a year and also you have 200k more growing so good insulation against other events.
informeddecisions.ie
Only in personal pensions, nothing for occupational pensions.
Article assumes TFLS €240k invested in paltry 1% deposit account (option A) versus invested in ARF with a 75/25 mix of stocks and bonds (option B).does it not depend on how the pension fund looks at retirement, I.e if annuity/arf drawdown is still below tax threshold by leaving the money in the pension, but say you go arf and can take out the 37k a year rather than 25k a year and also you have 200k more growing so good insulation against other events.
Read this one recently enough, which while still seems to show it make sense to take out the lump sum, but it’s not so crazy not to also.
Take Your 25% Tax Free Lump Sum, Or Not? - Informed Decisions
Thinking about taking your 25% tax free lump sum from pensions? Here we share what you need to know and the conventional and non-conventional options.
There are advisers in this thread with decades of experience who’ve never seen a scenario where is would make sense not to take one’s tax-free lump sum. I can’t envisage such a scenario where it would make sense not to take it. So I think ‘crazy’ is a fair enough description.does it not depend on how the pension fund looks at retirement, I.e if annuity/arf drawdown is still below tax threshold by leaving the money in the pension, but say you go arf and can take out the 37k a year rather than 25k a year and also you have 200k more growing so good insulation against other events.
Read this one recently enough, which while still seems to show it make sense to take out the lump sum, but it’s not so crazy not to also.
Take Your 25% Tax Free Lump Sum, Or Not? - Informed Decisions
Thinking about taking your 25% tax free lump sum from pensions? Here we share what you need to know and the conventional and non-conventional options.
Obviously when left in the ARF, you'd be paying the 20% on the initial capital + the gain. Whereas outside th ARF, the 41% is just on the gain.
The funds available on the ARF are likely to be also available on an investment product from the same provider. The difference then comes from comparing 1% levy (possibly paid for by the provider) and 41% exit tax on growth compared to PAYE being paid on capital and growth. Fund performance shouldn't be a factor in the comparison.
Yes, if you look at a life assurance company that sells ARFs, they will also have the same funds available in single premium investment bonds.
You are still liable for DIRT over 65 - unless your total income is under the exemption limit.
Hopefully with more weighting towards professional advice than research. Finance and investment seems to be one of the few areas where people feel that an article speed-read on the toilet trumps being a CFA or tax consultant.
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