Hi sunnyside,
The most common approach for someone who can’t ‘ARF’ immediately is to move to cash, the logic being that once you’re at €2m/€2.15m, the risk/reward becomes very skewed in favour of Revenue.
‘ARFing’ immediately is probably ideal if possible.
Some people crack on with their investment stategy regardless, on the basis that the Standard Fund Threshold may increase over time, even via indexation at a minimum, or they take the view that any growth, even growth that’s heavily taxed, is a good thing. Some of those people then look to split their pension assets into multiple PRSAs which can be ‘retired’ separately. For example, the retiree might access one PRSA with a value of €2.15m and leave another untouched until age 75 holding any excess. Yes, there’ll be Chargeable Excess Tax then based on current rules, but in the interim there will hopefully be tax-free investment growth. Plus, in a death scenario, the proceeds of the PRSA would be paid out tax-free to a surviving spouse.
Some people look to ship their pension out to Malta.
Personally, I think I’d ship mine out to Malta as I intend to spend a good bit of time in Portugal anyway.
All the best,
Gordon