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Irish pension terms explained

Search the terms you’ll encounter when exploring your pension.

AMC

Annual management charge: a recurring charge based on fund value. Check whether other costs apply.

ARF

An Approved Retirement Fund is a post-retirement investment arrangement available in certain circumstances. Its value and income are not guaranteed.

AVC

An Additional Voluntary Contribution supplements occupational pension benefits, subject to scheme and tax rules.

Allocation rate

The percentage of a contribution actually invested after any contribution charge.

Annuity

A contract exchanging a retirement fund for an income on agreed terms.

Consolidation

Combining pension arrangements, where permitted. It can involve costs or loss of benefits.

Defined benefit

Benefits calculated under scheme rules, often linked to service and salary, rather than solely to an individual fund value.

Defined contribution

Benefits depend on contributions, investment performance, charges and how benefits are taken.

Drawdown

Taking money from invested retirement savings.

Inflation

The rate at which prices rise, reducing the purchasing power of a fixed sum.

Master Trust

An occupational pension arrangement used by multiple employers with a common trustee and governance structure.

MyFutureFund

Ireland’s statutory automatic enrolment retirement savings system.

PRSA

A Personal Retirement Savings Account is an individual pension contract that can receive personal and, where applicable, employer contributions.

RAC

Retirement Annuity Contract, a personal pension arrangement available in qualifying circumstances.

Sequencing risk

The risk that the order of investment returns, particularly early losses during withdrawals, affects retirement sustainability.

Transfer value

The amount offered to transfer benefits from an existing pension arrangement.

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