An annuity converts an eligible retirement fund into income under a contract. An Approved Retirement Fund keeps eligible money invested and permits withdrawals, subject to tax and product rules. The Pensions Authority lists both among possible retirement options, but availability depends on the arrangement and personal circumstances.
Confirm which options your arrangement permits
Ask the scheme, PRSA or personal-pension provider for a current retirement-options statement. The Pensions Authority retirement-options guide explains that options vary across occupational schemes, PRSAs, retirement annuity contracts and buy-out bonds. Do not assume the full fund can use either route.
Compare annuity quotations line by line
- Single or joint life and the dependant percentage.
- Level or increasing income and the escalation basis.
- Guarantee period, payment frequency and start date.
- Medical or lifestyle underwriting evidence, if offered.
- Gross income, quotation expiry and provider identity.
Annuity rates change with market conditions and quotation features. This page makes no current income estimate or break-even claim.
Compare an ARF plan as a cash-flow plan
- Initial fund after any retirement lump sum and charges.
- Investment mix, risk, fees and withdrawal policy.
- Essential spending that must continue after a market fall.
- Longevity, inflation and sequence-of-returns stress tests.
- Beneficiary and death-treatment documents.
Revenue taxation and imputed-distribution rules can change and depend on the fund and owner. Obtain the provider's current tax illustration and verify it against Revenue guidance instead of relying on a fixed percentage copied into an article.
Retirement lump sums are a separate decision
Revenue's retirement lump-sum page, updated in June 2026, explains the current lifetime tax treatment. Confirm the calculation across all retirement lump sums before deciding what balance remains for an ARF or annuity.
Decision record
Write down the options offered, assumptions, guarantees, fees, tax basis, dependant needs and what happens on death. A hybrid may be available, but it is not automatically preferable. A regulated adviser can make a personal recommendation; Pensionplanner.ie cannot.