Ultimate Guide to ARF Charges Ireland

In Ireland, Approved Retirement Fund (ARF) charges have a significant impact on both your investment returns and your long-term retirement value. Equally important is risk management — ensuring your portfolio is structured to protect capital while delivering sustainable income.

This guide explains ARF charges in clear terms so you can:

• Keep costs low

• Design a robust ARF investment portfolio

• Adjust it over time to safeguard your capital

• Manage regular income withdrawals (imputed distribution)

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1. ARF Charges Explained

When minimising ARF charges under a standard fund-based arrangement, it’s important to know that charges are bundled into a single figure called the Annual Management Charge (AMC).

The AMC is charged annually against your ARF investment and appears on your policy schedule and client dashboard once your ARF is set up.

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Standard ARF Charges – Breakdown

Fund Manager Charge (FMC)

The FMC covers:

• Fund management

• Administration and documentation

• Income payments

• Tax, PRSI, and USC processing

The FMC depends on your chosen fund’s asset structure and management style (active, passive, fixed allocation, or a mix). Designing a personalised robust ARF portfolio is also key.

It very important to understand that the size of your ARF investment, post taking your retirement lump sum dictates the FMC charge and the larger your ARF fund the lower this provider charge can be. ARF funds exceeding 500,000 can achieve the lowest FMCs.

Typical FMC ranges for ARFs of €500K plus:

Note: Fund choice should be based on your risk tolerance, age, assets, income needs, succession goals, and ESG preferences. Regular monitoring, rebalancing, and risk adjustment are essential. Combining multiple fund managers under one ARF provider is an option for diversification.

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Financial Broker Support Charge

This annual fee covers your broker’s ongoing advice, administration, and legal/tax guidance.

Example:

For a €750,000 ARF:

• FMC: 0.50%

• Broker Support Charge: 0.20%

• AMC = 0.70% p.a.

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Full Cost Transparency – Total Expense Ratio (TER)

TER includes operational costs such as custody, legal, and audit fees, in addition to the AMC. These costs are usually small but should be factored in for accurate comparisons.

Example:

For a €750,000 ARF: 0.70% AMC + 0.06% operational charges = 0.76% TER

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Direct ARF Advisor Fees

Some advisors propose a one-off fee plus a high ongoing support charge. If considering a fee-only structure (typically €5,000–€7,000), ensure your initial commission is invested into your ARF (“bonus allocation”) to avoid paying twice.

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2. Self-Directed ARF Charges

A self-directed ARF allows you to select funds and individual assets such as shares, ETFs, bonds, options, structured products, or REITs.

Considerations:

• Best suited to experienced investors with very large ARFs and strong market knowledge.

• There is usually a large up front fee or allocation charge.

• Advisory services are typically ≥1.00% p.a. in combined charges.

• One Quote Financial Brokers currently does not offer self‑directed ARFs due to high costs.

Common approaches:

• Advisor + Insurance Company + Stockbroker (e.g., Aviva/Cantor Fitzgerald)

• Advisor + Qualified Investment Manager (QFM) platform (e.g., Conexim)

• Investment firm as QFM offering self‑directed ARF (e.g., Davy)

Typical costs:

Key takeaway: Self-directed ARFs generally cost more due to set-up fees, trading costs, and AMC of chosen funds.

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3. The ARF Process

Setting up an ARF involves multiple steps and paperwork — making advisor selection critical:

1. Claim retirement benefits (tax-free lump sum + ARF application)

2. Complete risk profiling and asset evaluation

3. Receive bespoke advice

4. Complete application and transfer follow-up

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4. Investment Decisions & Risk Management

Standard ARF Route

Six main providers in Ireland offer fund-based ARFs:
New Ireland, Zurich Life, Standard Life, Irish Life, Royal London, and Aviva. They offer both active and passive funds, including specialised sectors such as property, tech, gold, and energy.

Self-Directed Route

Execution-only self-directed ARFs require careful risk management, especially for imputed distribution and sequence risk — the risk of withdrawing funds at an unfavourable time.

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5. Top Tips to Minimise ARF Charges

• Demand full cost transparency, including TER

• Choose the right advisor — not just the cheapest option

• Monitor your portfolio and adjust allocations as markets and needs change

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6. ARF Charges – Key Takeaways

• Never accept less than 100% allocation on a standard commission-based ARF

• FMC should be ≤0.75% p.a., ideally ≤0.50% if ARF ≥€500K

• Broker support charges should not exceed 0.25% p.a.

• Multiple pension transfers incur extra fees — negotiate where possible

• Choose impartial advice over occupational scheme-associated advisors

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7. Why Choose One Quote Financial Brokers?

• Lowest transparent AMC/TER charges

• Access to 25+ fund managers with bespoke portfolios

• Ongoing support for only up to 0.25% p.a. (0.20% p.a. for ARF ≥€750K)

• Over 17 years’ ARF advisory experience

• Personalised portfolio reviews and quarterly updates

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Our ARF Advisory Process

1. No‑obligation consultation

2. Risk profiling + detailed market comparative report

3. Personalised ARF report showing charges, returns, and withdrawals over time

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Where to Go From Here

Whether you’re nearing retirement with a DC Group Pension arrangement, Executive Pension Plan, PRSA, Personal Plan, or PRB — or if you already have an ARF but want to improve charges, performance, or service — we can help.

At One Quote Financial Brokers, we provide:

• Access to leading global fund managers

• Highly competitive charges

• Premier-level service during set-up and throughout retirement

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Free ARF Consultation

We have already outlined the highly competitive terms that we can offer, so should you wish to start the process, with detailed personalised recommendations, please get in touch. Proof of funds will be sought.

To arrange a free initial 30-minute consultation by Phone, or Video Meet, please contact us today. Contact: Ken O’Gorman – Retirement Specialist – CB, QFA, RPA, SIA – One Quote Financial Brokers on: 01 845 0049 or email: ken@onequote.ie

Or enquire online and give us a quick outline of how we can help.