You are not restricted to only drawing down 5pc per year, you may withdraw more but all withdrawals will be taxed as income
Withdrawals from your ARF are subject to income tax at your standard or marginal rate. Photo: Getty
Q I will be 80 in November. My wife will be 77 in May. We both have a state pension of €29,744 yearly gross. I also have an Approved Retirement Fund (ARF) of €646,000, which I am allowed to draw down in December at a rate of 5pc, which amounts to €29,204 net after tax.
If I decide now to take out the entire ARF, it seems that I will pay exit tax of 38pc. Is this correct?
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