Irish ARF Drawdown Calculator 2026
An Approved Retirement Fund (ARF) lets you keep your pension invested in retirement, drawing income flexibly. Revenue requires a minimum 'imputed distribution' each year — calculated from your fund value, age, and a fixed percentage. Enter your details to see the gross drawdown and the tax cost.
How is this calculated?
The imputed distribution rate is: 4% if aged 60–70, 5% if aged 71+, or 6% if your fund exceeds €2,000,000 (this latter rate overrides the age-based rate). The drawdown is added to other taxable income for the year and subjected to PAYE / USC / Class S PRSI. The ‘tax on drawdown’ is the marginal-rate delta vs other-income-only.
Frequently Asked Questions
What is an ARF?
Approved Retirement Fund — a vehicle to hold your pension after retirement, replacing the older purchase-an-annuity default. You stay invested (with all the upside and downside that implies) and draw income flexibly within Revenue's minimum-distribution rules.
Why is the imputed distribution required?
Revenue requires a minimum annual drawdown to ensure tax-deferred pension funds are eventually used for income (not preserved indefinitely as a tax-sheltered estate). The imputed amount is taxed regardless of whether you actually withdraw it.
How is the ARF drawdown taxed?
Same as employment or self-employment income — PAYE income tax (20% / 40% bands), USC (using your overall income to determine the band), and PRSI (if under age 66). The €2m + 6% rate doesn't change the tax — it just increases the minimum distribution.
What about the tax-free lump sum?
Separate from the ARF imputed distribution: at retirement you can typically take 25% of your pension as a tax-free lump sum (capped at €200k tax-free, with €200k–€500k taxed at 20%, and above €500k at marginal rate). This lump sum is taken BEFORE the remaining fund moves into an ARF.
Can I draw less than the imputed distribution?
Yes physically — but tax is due on the imputed amount whether or not you take it. So drawing less means you pay tax on income you didn't receive. Most people draw at least the imputed amount each year to avoid that quirk.
Last updated: May 2026 · Rates sourced from Revenue