Exit Charges on ARFs - What is typical?

[Deauville]

If they are PRSAs then you can leave them sit up to age 75. If they are DB AVCs then they retire at the same time as the DB scheme. Not sure about PRBs but would think it's likely you could put PRBs in a PRSA and also avail of waiting to 75

As a follow on from above management of ARF discussion:

If one has a number of DC pension pots (PRBs/PRSA) from previous employments (I have 4 plus current scheme), can these be let sit / parked indefinitely or do they have to be moved to an ARF at a certain stage e.g. Normal Retirement Age (65)? Could some of them be moved to a PRSA to vest up until aged 75?

I'm considering 'retiring' early from my current employment when aged 61 but I may work part time or temporary in other employments until aged 65 if I feel like it. Depending on circumstances I'd like to be able to move 2-3 of my pots into an ARF (to have some income) but park 2-3 of my pots (to avoid having to take a deemed distribution).

If I get additional work (or not) I'd envisage drawing down 10%-25% distribution of the smaller ARF as required and possibly avoiding the 40% Income tax bracket. The other non-ARF pots could continue to grow without the deemed distribution requirement?

Possibly something to be mindful of.
When setting up an ARF.
If you avail of a lower AMC by accepting an early withdrawal penalty, you may be subject to that penalty if you distribute above a certain amount.
For example 10 or 15% distributions.
Perhaps one of our professionals could confirm if that’s the case ?

 

[redstar]

Possibly something to be mindful of.
When setting up an ARF.
If you avail of a lower AMC by accepting an early withdrawal penalty, you may be subject to that penalty if you distribute above a certain amount.
For example 10 or 15% distributions.
Perhaps one of our professionals could confirm if that’s the case ?

Interesting point. I imagine this would be a consideration for anyone who needs to withdraw min 5000 from an ARF over 4 or 5 years to help gain Class S stamps. The % of the total ARF involved could be 10, 15, 20% or more.

 

[Fortune]

Possibly something to be mindful of.
When setting up an ARF.
If you avail of a lower AMC by accepting an early withdrawal penalty, you may be subject to that penalty if you distribute above a certain amount.
For example 10 or 15% distributions.
Perhaps one of our professionals could confirm if that’s the case ?

I think none of the life assurance ARFs are charging EECs on withdrawals now (possibly only on transfers). I may be mistaken....