AMRF

[Feemar5]

My husband has a small amount invested in an AMRF with Aviva in their UK Property Fund. The amount seems to be continually reducing each year and has again reduced in value since May of this year. Could anyone advise what he can do - if he takes it out I expect he will pay tax on the whole amount or can he transfer to another fund which might be more profitable.

 

[Conan]

There should be a choice of Funds available. So ask Aviva what other Funds are open to him.

 

[LDFerguson]

Unless / until he's 75 or has guaranteed lifetime income of €12,700 per year, the maximum he can withdraw from an AMRF is 4% per year.

His choices are, as Conan suggests, to switch into another fund offered by Aviva, to move his AMRF to another AMRF with another company or to use the AMRF fund to buy an annuity. He could ask the broker who set up the AMRF to explain these options to him in the context of his overall financial circumstances.

 

[Feemar5]

Thanks for replies - if he switches to another company I expect there will be set up charges - any idea of normal fee or is it a percentage.

 

[LDFerguson]

Thanks for replies - if he switches to another company I expect there will be set up charges - any idea of normal fee or is it a percentage.

If he's willing to lock in for 5 years with the new company he may get lower set-up charges. Set-up charges vary between AMRF companies and also brokers / intermediaries so there's no normal fee. It can be anything from 0% (with a lock-in for 5 years) to 5%. Check with Aviva if there's any exit charge for leaving.