I think every single post on this thread assumes that the ARF is being provided by an Insurance Company.
Not a single reference to the possibility of using a Qualifying Fund Manager, separate custodian and separate fund managers.
For many ARFs this is actually the best way to go but this option does not get much air time as the dominant distribution model in Ireland is the packaged insurance scheme.u
The real benefits of this approach are most significant for bigger schemes
Typically you would be looking at fees like this
Initial set up fee of around €1000
Annual fees as follows:
QFM 0.25%pa or €900pa minimum
Independent Custodian 0.05%pa
Fund management charges typically range from 0.15% to 0.5%pa depending on fund choice.
If you need the services of a professional adviser these should be paid for separately and not bundled together by an insurance company so that you end up having no idea what you are really paying.
No early surrender penalties, no smoke and mirrors.
If you are wondering why you need a QFM and an independent custodian ask anyone who had their money with Bernie Madoff or Custom House Capital.