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The Facts:

  • Married Couple both aged 66
  • Pension Fund of €390,000 Accumulated
  • Entitled to State Pension
  • No other Income
  • First €36,000 income is Exempt from Tax for over 65s


The Advice:

  • Receive State Pension each Year = €24,263
  • Draw Down 25% of the Pension Fund Tax Free = €97,500
  • Invest €63,500 in an AMRF and take a drawdown of 4% each year = €2,540
  • Invest the balance €292.500 in an ARF and drawdown 4% each year = €9,160



  • €97,500 Tax Free in a Deposit Account
  • Total Income in Year 1 of €35,963
  • No Income Tax Payable because income is less than €36,000


Standard Notes:

  • The sample case study above is for illustration purposes only.
  • USC may still apply.
  • PRSI does not apply after age 66.
  • Note ARF distribution will have to increase to 5% at age 70.
  • State Pension assumed at full rate of €233.30 per week.
  • Fund Growth has not been factored in.
  • Product Charges have not been factored in.


Really Important Notes:

  • Metis Ireland is not a tax advisory firm and this article should not be taken as taxation advice.
  • Metis Ireland always recommends that clients get independent taxation advice.
  • Metis Ireland has a team of experts in the field of Financial Planning that regularly finds brilliant solutions like this for clients.
  • Metis Ireland invests heavily in our Financial Planning team’s education so that we can always give our clients the very best financial advice possible.
  • Metis Ireland has a team of Financial Advisers AND a team of Financial Planners.
  • Metis Ireland can run a lifelong cash flow plan for you which will identify tax planning opportunities that you can then explore with your tax adviser.
  • Metis Ireland wonders if your current adviser does all this!


Call us on 061 518365 or email for more information on these types of solutions.


Carl Widger

Co-Founder & Director


Metis Ireland Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland. All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified independent financial adviser before entering any financial contract. Metis Ireland Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.