Zurich Retirement options

Income for Life (Annuity)
This is a very popular retirement choice in that it offers you complete peace of mind. An Annuity
guarantees to pay you a secure income for the rest of your life, no matter how long you live. This is a
very attractive option but you cannot pass any remaining fund on to your family when you die.
You have the option of choosing an Annuity that increases at a set rate each year, guarantees payment for a
specific number of years or can provide a percentage of your income to your spouse after you die.

Choose if:
• You want a steady income for life.
• You don’t want to risk your retirement fund.

It’s very important to discuss the following factors with a financial broker, advisor or Zurich before you choose an appropriate solution for your needs:

• The size of your retirement fund.
• The level of income you would prefer during your retirement years.
• Your age and state of health.
• Other assets at your disposal, including the State Pension.
• Your preference in relation to risk and security.
• Your preference in relation to passing on your fund when you die.
• You should also consider your attitude to investment risk and what level of control you want.

One of the benefits of all retirement plans is the option to take a tax-free cash lump sum payment from your
matured pension fund of up to €200,000 (as at November 2021). The remaining balance can then be used to
fund your retirement in the following three ways.

Approved Retirement Fund (ARF)
An ARF gives you more control over how your retirement fund is managed. It is an investment plan with
the intention of growing your fund during your retirement years based on your own investment strategy.
You can make withdrawals as and when you need to, and even use it to provide a regular income. The
funds in your ARF are available to your family after your death. The downside of an ARF is that without
careful planning it is possible to drain your fund before you die.

You can invest in a range of different investment funds depending on the level of risk you are comfortable
with and you benefit from the tax-free growth of these funds.

Choose if:
• You want your retirement fund to have the potential to continue to grow.
• You want more control over how your fund is invested.
• You want to pass on the balance of your fund after your death.
• You want to make withdrawals as and when you need to.
Note: This can get complicated so it makes sense to talk to a financial broker, advisor or Zurich.

Warning: This product may be affected by changes in currency exchange rates.
Warning: The value of your investment may go down as well as up.
Warning: The income you get from this investment may go down as well as up.
Warning: If you invest in this product you could lose some or all of the money you invest.

Taxable lump sum
In certain circumstances it is possible to take the remaining balance of your pension fund as a taxable
lump sum.

However, under current Revenue practice (as at November 2021) you will be obliged to pay income tax at
the marginal rate, the Universal Social Charge (USC) under the Pay As You Earn (PAYE) system and Pay
Related Social Insurance (PRSI) contributions if under age 66.

Choose if:
• You want access to your money in one lump sum.

 

LABrokers http://www.labrokers.ie

 

https://www.zurich.ie/pensions-retirement/calculators/pension-calculator/