When approaching retirement, one of the most important financial decisions you’ll make is how to manage your pension benefits. Many retirees, particularly those leaving employer-sponsored occupational pension schemes, assume they must stay with their current broker or associated advisors. In reality, you have options—and choosing the right ARF retirement advice can make all the difference to your long-term financial security.
Why ARF Retirement Advice Matters
Just as shopping around benefits you in other areas of life, comparing retirement options pays off too. Careful planning ensures you maximise your tax-free lump sum before deciding between a Vested-PRSA, an Annuity, or an ARF (Approved Retirement Fund).
Every individual’s financial circumstances are unique, and if you choose the ARF route, it’s essential to have a robust ARF investment strategy. This should take account of the broader economic backdrop, your retirement income needs, and your appetite for risk versus return.
At One Quote Financial Brokers, we tailor ARF portfolios for the long term while fine-tuning fund choices based on the current 12-month outlook. Your ARF is reviewed annually, ensuring flexibility to adapt to both market conditions and your changing income needs.
Below, we explain how we help clients manage their ARFs effectively, particularly during times of market volatility.
Managing Market Volatility in ARFs
Because ARFs remain invested in markets, they are exposed to ups and downs that can affect both returns and withdrawal sustainability. That’s why proactive, personalised ARF retirement advice is so important.
Here’s our structured approach:
1. Diversified Investment Strategy
Diversification spreads risk across asset classes to balance growth and stability:
-
Equities – long-term growth potential
-
Bonds – income and capital stability
-
Alternatives – real assets such as property or infrastructure
-
Cash – liquidity and protection during downturns
We also use:
-
Multi-asset funds aligned with your risk profile
-
Multi-manager diversification
-
Downside-protected funds where suitable
2. Dynamic Withdrawal Strategy
-
Focus on percentage-based withdrawals, not fixed amounts.
-
Maintain a cash or short-term bond reserve to cover 1–3 years of income, helping you ride out market dips.
3. Bucket Strategy
Dividing your ARF into “time buckets” helps balance income needs with growth potential:
-
Bucket 1 (0–3 years): Cash/short-term bonds for immediate income
-
Bucket 2 (3–7 years): Balanced medium-risk portfolio
-
Bucket 3 (7+ years): Growth-focused assets with higher return potential
4. Regular Reviews and Rebalancing
-
Annual reviews ensure your portfolio remains aligned with your retirement goals.
-
Rebalancing prevents overexposure to risk after rallies or becoming too defensive after downturns.
5. Active Risk-Managed Funds
-
Target-volatility funds adjust market exposure automatically.
-
Downside protection strategies (such as options) may also be considered.
6. Alignment with Your Retirement Objectives
We focus on:
-
Preserving your retirement capital
-
Delivering sustainable long-term income
-
Supporting legacy and estate planning, if relevant
7. Clear Communication
-
Volatility is normal—what matters is managing it.
-
We explain different market scenarios and their potential impact.
-
Transparency around charges is central to our advice.
8. Bespoke Portfolio Reporting
We provide clear, personalised portfolio reports including:
-
Stress testing against different growth scenarios
-
The impact of charges on your long-term income
-
Regular reminders of your agreed strategy
Speak to a Pension Specialist
If you’re considering an ARF or looking for tailored ARF retirement advice, expert guidance will help protect your capital and secure your income.
Book your free consultation today:
📞 Ken O’Gorman – Director & Retirement Planning Specialist
One Quote Financial Brokers
Tel: 01 845 0049
✉️ ken@onequote.ie
Or enquire online and tell us how we can help with your ARF retirement questions.
