ARF Distribution and PAYE Process.

Deauville said:
Can you send that type of instruction directly to Zurich or must you go through your broker. Execution only or otherwise ?
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Zurich are set up to accept instructions directly for extra drawdowns or changes to regular drawdowns. I always used this facility. The Execution only broker would do these also but the Zurich response is rapid and was preferable.

A few times when I had a specific question relating to my ARF or a question relating to ARFs in general Zurich would refuse to answer and referr me to my advisor (E O broker).

The Execution only broker directs any queries forward to Zurich.
The Execution only broker is the named advisor for my ARF and has no problem providing this service.

The Execution only service cannot include advice relating to fund choice and investment strategy. Other than that they are the ARF advisor.
 
S class said:
Zurich are set up to accept instructions directly for extra drawdowns or changes to regular drawdowns. I always used this facility. The Execution only broker would do these also but the Zurich response is rapid and was preferable.

A few times when I had a specific question relating to my ARF or a question relating to ARFs in general Zurich would refuse to answer and referr me to my advisor (E O broker).

The Execution only broker directs any queries forward to Zurich.
The Execution only broker is the named advisor for my ARF and has no problem providing this service.

The Execution only service cannot include advice relating to fund choice and investment strategy. Other than that they are the ARF advisor.
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I didn't know you could direct a query to an execution 'only' broker. I thought they execute the set up of an ARF and that's the end of the relationship. Surely if you have queries after set up you would have to pay the execution only broker to answer any query.
 
Roro999 said:
I didn't know you could direct a query to an execution 'only' broker. I thought they execute the set up of an ARF and that's the end of the relationship. Surely if you have queries after set up you would have to pay the execution only broker to answer any query.
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No, the broker has a contract to be the advisor for the ARF. They receive ongoing commission. They are not your financial advisor, but can and do assist with any technical issues with the ARF.

I suppose the term agent, would be a better description than advisor.
 
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S class said:
No, the broker has a contract to be the advisor for the ARF. They receive ongoing commission. They are not your financial advisor, but can and do assist with any technical issues the ARF.

I suppose the term agent, would be a better description than advisor.
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Are you sure the execution only broker receives ongoing commission. My AMC is .35% and it is clear that there are no other charges. Perhaps the execution broker receives something of the .35% back from the provider.
 
They are paid a percentage of the AMC. This was included in the set up documentation for the ARF.
 
Some execution-only brokers receive trail commission. Others don't. It depends on the specific broker and the product.
 
I don't know an execution only broker that can't/won't transact business with/without trail, depending on the product.

I feel a 'Why do product charges/costs posts always decend into farce on AAM?' post coming on.

Gerard

www.prsa.ie
 
I hope it's okay to add a question rather than start a new thread.
As I mentioned in my OP
I retire in May this year,
I have a
  • DC occupational pension fund currently €750,000,
  • An SPPP AVC fund with Irish Life currently €110,000,
  • A small DB (€3,200 p/a).
All the above benefits are attached to the same employment and therefore must be taken at the same time.
I don't have any other retained benefits.


My preference is to take 200k TFLS and set up an ARF from my DC and AVC, but not until after November 30 to avoid this years deemed distribution. I would may well be paying all at standard rate PAYE in 2025 as apposed to 40% in 2024 .


My question,
If I stall taking my DC benefits (setting up an ARF) and retain the small DB,
do I have the option of drawing the DB in retirement from May or do I have to wait until the ARF is set up in January 2025 to draw the DB.

If the later was the case presume I would get the DB back dated to May 2024 ?

The DC fund would it seems remain invested in the DC scheme until I give them instruction to transfer to an ARF provider.

My preference at the moment would be to retain the DB. It's not much but with the state pension would afford some guaranteed income in retirement.
It would also be an option to transfer the DB to the DC prior to retirement but not my preferred option.

Revenue will allow me to keep the DB and also set up an ARF.
I was in one of those frozen and de-risked DB schemes to which further accrual was not allowed and replaced by a DC scheme.
Usually all benefits attached to the same employment must be taken in the same manner (apart from AVC's).

Has anyone come across such a plan before ? Is it feasible do you think ?

A bit long winded I know but thanks for taking the time to read.
 
Does anyone know if Zurich will do an adjustment in December to ensure the required 4% has been taken?
 
For clarification.
In an earlier post I stated that Zurich ARF didn’t facilitate a bucket strategy ( being able to choose from which fund to draw down from).
I was wrong. They do.
Also, they now facilitate periodic fund rebalancing within portfolio.
 
I reckon when the time comes I might buy an annuity that provides a very minimal standard of living e.g. 20k. Then have the remainder in an ARF where if possible it would be all equities, higher risk strategy etc. The purpose being that

1. The ARF would be smaller meaning smaller charges ultimately
2. The higher risk would mean that the charges would be a smaller percentage of the overall gains
3. When the markets inevitably go down there is no pressure to take more than 4% because the support of the minimal annuity is there and you can just tighten your belt.
 
Fibbernacci said:
I reckon when the time comes I might buy an annuity that provides a very minimal standard of living e.g. 20k. Then have the remainder in an ARF where if possible it would be all equities, higher risk strategy etc. The purpose being that

1. The ARF would be smaller meaning smaller charges ultimately
2. The higher risk would mean that the charges would be a smaller percentage of the overall gains
3. When the markets inevitably go down there is no pressure to take more than 4% because the support of the minimal annuity is there and you can just tighten your belt.
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Why not let the state pension do that job or maybe you won't qualify or are talking about retiring early?
 
Fibbernacci said:
I reckon when the time comes I might buy an annuity that provides a very minimal standard of living e.g. 20k. Then have the remainder in an ARF where if possible it would be all equities, higher risk strategy etc. The purpose being that

1. The ARF would be smaller meaning smaller charges ultimately
2. The higher risk would mean that the charges would be a smaller percentage of the overall gains
3. When the markets inevitably go down there is no pressure to take more than 4% because the support of the minimal annuity is there and you can just tighten your belt.
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I like that approach.
 
ClubMan said:
Why not let the state pension do that job or maybe you won't qualify or are talking about retiring early?
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There is sometimes a non-financial benefit to securing a lifelong baseline income, particularly for a partner left behind who might not be as financially savvy as an AAM'er in terms of managing ARF's and investments..... or even if our own faculties desert us in later life. This can be better than some of the alternatives, e.g. equity release in old age.
 
ClubMan said:
Why not let the state pension do that job or maybe you won't qualify or are talking about retiring early?
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Yes. Talking about retiring early.

To my mind the purpose of the state pension in my plan is to lift my overall income to smooth out the effects of inflation. By the time I retire in 15 years it'll probably only be available age 70
 
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