Pensions & Retirement
An Approved Retirement Fund keeps your pension invested after you retire while you draw an income from it. Enter your fund and age to see the minimum you must draw and an illustration of how long it could last.
Building your pension first? AVCs · Company & director pensions
An illustration from what you enter, at current 2026 rules. It shows a shape — not a recommendation of how much to draw.
Starts at your minimum — change it to see a different pace.
Illustrative only — returns aren't guaranteed and won't be steady.
Your minimum each year
You must take at least €16,000 a year (4% imputed distribution).
From age 61, Revenue treats a minimum each year as drawn and taxes it whether or not you take it: 4% from 61, 5% from 71, and 6% where your ARFs total more than €2m.
At €16,000 a year and a steady 4% return, this fund would still be paying at age 100.
Illustrative total drawn: €560,000.
Warning: These figures are estimates only. They are not a reliable guide to the future performance of your investment.
Illustration only — current 2026 rates — not advice or a quote
This is an illustration, not a recommendation. It assumes a steady return every year, which real investments never deliver — a run of poor years early in retirement can shorten how long a fund lasts. Income tax is payable on ARF withdrawals. How much to draw is a decision to make with advice, after a full review. The value of investments can fall as well as rise, and past performance is not a reliable guide to the future.
Rates as at June 2026.
Warning: These figures are estimates only. They are not a reliable guide to the future performance of your investment.
| Age | Fund at start of year | Withdrawn | Fund at end of year |
|---|---|---|---|
| 66 | €400,000 | €16,000 | €399,360 |
| 71 | €396,534 | €16,000 | €395,755 |
| 76 | €392,316 | €16,000 | €391,369 |
| 81 | €387,185 | €16,000 | €386,032 |
| 86 | €380,942 | €16,000 | €379,540 |
| 91 | €373,347 | €16,000 | €371,640 |
| 96 | €364,106 | €16,000 | €362,030 |
| 100 | €355,291 | €16,000 | €352,863 |
Before an ARF, most people take a retirement lump sum. The standard fund threshold — the lifetime limit on tax-relieved pension funds — is €2.2m in 2026, rising to €2.8m by 2029.
| Lump sum (25% of the pot) | €125,000 |
| Tax-free (lifetime max €200,000) | €125,000 |
| Next slice at the standard rate (up to €300,000) | €0 |
| Any balance at the marginal rate (shown at 40%) | €0 |
| Tax on the lump sum | €0 |
| Remaining fund (e.g. to an ARF) | €375,000 |
Rates: LIA June 2026 factsheet. Assumes the lifetime lump-sum limits have not already been used.
Two ways to turn a pension fund into an income. Many people use one, the other, or a mix.
ARF — minimum draw
€16,000 a year
Flexible, stays invested — the income is not guaranteed.
Annuity — guide income
€22,400 a year
Guaranteed for life, level — using the 5.60% guide rate for age 65 (nearest published age).
| ARF | Annuity | |
|---|---|---|
| Your money | Stays invested in your name. | Exchanged with an insurer for an income. |
| Income | Flexible — you choose, above the minimum. | Guaranteed for life (or a fixed term), set at the start. |
| Investment risk | You bear it: the fund can fall as well as rise. | The insurer bears it. |
| Flexibility | High — change withdrawals, take lump sums. | None once bought. |
| On death | The remaining fund passes to your estate. | Usually stops, unless a spouse's pension or guarantee period was chosen. |
Illustration only — current 2026 rates — not advice or a quote
Annuity figures use single-life, level guide rates (5.03% at 60, 5.60% at 65) and are indicative only — actual rates depend on the insurer, your health and the options chosen, and change over time.
Rates as at June 2026.
Unlike an annuity, what's left in an ARF passes on. How it's taxed depends on who inherits:
| Who inherits | How it’s taxed (current rules) |
|---|---|
| Spouse or civil partner | Can pass into their own ARF with no income tax on the transfer (their later withdrawals are taxed under PAYE). Exempt from inheritance tax. |
| Child under 21 | No income tax. Inheritance tax (CAT) applies. |
| Child aged 21 or over | Income tax at 30%. Exempt from inheritance tax. |
| Anyone else | Income tax and inheritance tax both apply. |
Getting the order of beneficiaries and the protection around them right can make a large difference to what your family keeps. It's worth a conversation. Request a callback →
Investment Warnings
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: The income you get from this investment may go down as well as up.
Warning: This product may be affected by changes in currency exchange rates.
Warning: Past performance is not a reliable guide to future performance.
Drawing down a pension is one of the biggest financial decisions you'll make. Your figures travel with the request so the conversation starts from your numbers.
There's no separate fee for life, pensions, investment or protection advice.
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