Minimum ARF allowed how much in AVCs Required

Can anyone guide me Regarding ARFs . What is the minimum ARF, which can be set up and which company eg for amount of approx €20,000.
I have PRSA /AVC of €10,000 with New Ireland - through Pension advice and Zen Insurance, broker ( broker originally with IPF, moved to Pension Advice and Zen Insurance. it’s 50% with Good body Dividend Income 3 (6P) and 50% Pension cash fund 6P . AMC 1.5 % and 1.7% and allocation rate of 100% and another charge 0.5% approx

Charges quoted at time of purchase:

• Fee of €400
• Allocation rate – 100%
• Annual Management charge averaging at 1% pa (1.25% GDI 3 and Cash 0.75%)

As pointed out here, there is too much in cash fund which needs to be changed.

An IPF broker recommended, maximising lump sum, to help build sufficient funds if trying to set up an ARF but that I may not have enough to max tax free allowance and purchase an ARF.
He Recommended setting up another AVC, eg Passive Iris 2024, of €21,000 some of the declared Charges are 5% and 0.75% AMC. Would it be better to move all to the PRSA AVC or new AVC. Hope this makes sense. Thanks very much for advice to date

Irish life were setting up ARFs for 10,000 euro a few years ago. This probably hasn't changed. Zurich state that 20000 is their minimum ARF, but they can if requested open at a lower level.

Don't go with the quoted AVC, the fees are too high.

Use your existing AVC PRSA or, if you are happy to decide fund and risk level yourself, you should contact Gerard Sheehy or Liam Ferguson and set up a new execution only AVC PRSA. You will get 100% allocation and possibly am AMC less than 1%.

You could transfer your existing AVCs into the new AVC PRSA if you wanted to.

S class said:

Irish life were setting up ARFs for 10,000 euro a few years ago. This probably hasn't changed. Zurich state that 20000 is their minimum ARF, but they can if requested open at a lower level.

Don't go with the quoted AVC, the fees are too high.

Use your existing AVC PRSA or, if you are happy to decide fund and risk level yourself, you should contact Gerard Sheehy or Liam Ferguson and set up a new execution only AVC PRSA. You will get 100% allocation and possibly am AMC less than 1%.

You could transfer your existing AVCs into the new AVC PRSA if you wanted to.

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Thanks very much S Class. You are a mine of information as usual. Much appreciated

Hello

Can you please help
Has anyone dealt with New Ireland, ref PRSA AVC. The broker I was dealing with left for a new company, and I’m finding it difficult to get in contact with the new person, who has taken over my file.

It was a Very small AVC of €10,000 (maybe that’s why I can’t contact) I had paid original person from brokers €400 Fee Oct 22, and Annual Fund Charges on pension cash fund are 1.2 %
NS good-body Dividend, income 3 (6P) are 1% fees fund related charge €57.15. Value of fund 30th June, €10,526.

Has anyone dealt with New Ireland re Individual PRSA department, ref topping up AVC, is it cumbersome. I’m looking at Timelines re oct 31, re lump sum back payment for 2023, and conscious it’s probably a bit late re setting up a new AVC with another provider.

How quickly do New Ireland get back if anyone has experience of dealing with New Ireland re AVC lump sum of approx €22,000 I’d appreciate if you could let me know.

Might a vested PRSA rather than an ARF be an option here, in case the minimum amount for the former is less than for the latter?

ClubMan said:

Might a vested PRSA rather than an ARF be an option here, in case the minimum amount for the former is less than for the latter?

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Hi Clubman thanks yes I was told ARF not really feasible one particular reason for the ARF was looking at eligibility ref contributory pension, and prsi is deducted from ARF and with a distribution of 5000, this would allow for 500 towards pension. l was previously looking at an ARF as I have 370 weeks of PRSI and would require another 3 years approx to be eligible for contributory pension, two different sources, one said I could take out ARF another said I couldn’t. At present I have a PRSA AVC €10, 500. looking at Last minute AVC thought possibly 24,000 for 2023 and then look at 2024.

An ARF of slightly over 15000 euro to get 3 drawdowns of 5000 euro is totally feasible.

Contact Gerard Sheehy at PRSA.ie.
Ask him to set up an execution only AVC PRSA for you before 30 October.
You just need to decide yourself what funds you wish to invest in. Gerard will provide all forms and assist in the set up. You will get 100% allocation and no set up fee.
You can have multiple AVC PRSAs.

When you retire and set up your ARF all the funds in your AVC PRSAs are combined to provide your tax free lump sum and ARF.

Or you could post a cheque directly to New Ireland bypassing the broker.
Include a signed letter instructing them to allocate your funds to your existing AVC PRSA into whatever funds you select. Include your name, policy number, address and date of birth in the letter.

Hello S class wonder is this standard? Can anyone tell me please if this sounds like a correct charging structure

Broker came back, original person had moved on. Brokers called Pension Advice charging of €250 for putting further lump sum of 24,000 into same AVC prsa saying
“As this arrangement was set up on fee basis rather than a remuneration structure, the fee for this transaction is €250 (1%) previously charged 400 for 10,000 lump sum in 2022. I’m sure this is not the only fee as previous charges etc.

You would probably get a better deal than this from a prsa. You should be able to get 100% allocation (all your 24000 euro invested) and no charge for paying it in.

Try here

S class said:

You would probably get a better deal than this from a prsa. You should be able to get 100% allocation (all your 24000 euro invested) and no charge for paying it in.

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Thanks very much S class. I will check PRSA out. I'm conscious of timelines 31st October deadline. Is that execution only.

november16 said:

Thanks very much S class. I will check PRSA out. I'm conscious of timelines 31st October deadline. Is that execution only.

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I think it is execution only, I'm not certain. Go ahead and start the application. If it is not set up in time you have a plan B to pay into your existing broker near 31 October. Hopefully you will be able to avoid this.

S class said:

I think it is execution only, I'm not certain. Go ahead and start the application. If it is not set up in time you have a plan B to pay into your existing broker near 31 October. Hopefully you will be able to avoid this.

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Thanks S class I will need fall back plan,

This lady from brokers already emailed re said sending an invoice without agreeing a quote re fee I thought a bit presumptuous slight of hand. I can’t see any fee structure re lump sum payments. Then for For 2024 another fee. I Would prefer to go elsewhere as the original person I was dealing with was with IPF, she moved to this broker, then moved elsewhere and now new person. It’s peanuts for most people but not for me.