The Approved Retirement Fund (ARF), and Approved Minimum Retirement Fund (AMRF), is a unit linked single premium post-retirement investment product.
At Aviva we offer an ARF/AMRF with clear charges, flexibility, value for money and wide investment choice which is everything a client needs in retirement.
An ARF allows a client to take a regular income in retirement from the fund. An AMRF however restricts withdrawals to the investment growth made on the policy only, until the age of 75. All withdrawals are taxed as income.
From 2007 tax is payable on deemed distributions from an ARF. This means that if you do not take a withdrawal, a tax charge will nevertheless be made to your policy based on a notional withdrawal or ‘deemed distribution’ amount. The deemed distribution is 5% of the value of your ARF assets at 31 December each year. However, actual withdrawals made by you will be creditable against the deemed distribution charge. These rules do not apply until you are 60 years of age or over for the entire tax year.
Warning: If you invest in this product you may lose some of all of the money you invest. The value of your investment may go down as well as up. This product may be affected by changes in currency exchange rates. The income you get from this investment may go down as well as up.