Irish Life Pension

My Father has a very modest pension (circa 70k) maturing soon. He is taking 25% tax free and putting the rest into ARF (Irish Life funds) he is thinking of mixing i between 4 low risk (2 & 3 on Irish life scale) funds. Is there anything to avoid here in terms of Irish life fees? What's the best way to minimize fees?

He doesn't have to go with Irish Life. I can't comment about his fund choice without details of his requirements, but in general terms, he can get 0.5% annual charge with the likes of New Ireland or Zurich Life via a broker. Depending on his other financial circumstances, tax position etc., he could set up an ARF with no early exit penalties which would allow him to withdraw the entire fund over a period of years at the lower rate of tax.

Dave Vanian said:

He doesn't have to go with Irish Life. I can't comment about his fund choice without details of his requirements, but in general terms, he can get 0.5% annual charge with the likes of New Ireland or Zurich Life via a broker. Depending on his other financial circumstances, tax position etc., he could set up an ARF with no early exit penalties which would allow him to withdraw the entire fund over a period of years at the lower rate of tax.

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Hi Dave

The early exit penalties on ARFs is now for transferring the value of the ARF to another provider. They have removed the penalties if the client is withdrawing the money from their own account (at least with the companies I deal with). Which is only fair, some of them had limits of 5%.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)