The most recent increase in the State Pension (Contributory) that came into effect in March of this year, means that those in receipt of the maximum rate of this payment (€248.30 per week) will have an annual guaranteed income which is in excess of the Revenue’s definition of specified guaranteed income (€12,700).
As a result, future retiree’s that have reached State Pension Age (currently age 66) and are in receipt of the maximum rate of State Pension (Contributory), will no longer be required to purchase an Approved Minimum Retirement Fund (AMRF). Should those individuals choose the “ARF” option, then all residual funds they have after taking their pension lump sum can be used to buy an Approved Retirement Fund (ARF).
For those who are existing Approved Minimum Retirement Fund (AMRF) holders whose income has been increased to above the required €12,700 as a result of the state pension increase should contact us as we can look into arranging for your Approved Minimum Retirement Fund (AMRF) to be transferred to an Approved Retirement Fund (ARF), thus allowing you to draw down an income from the Approved Retirement Fund (ARF).
Should you wish to discuss this in more detail, our advisors will be happy to go through this with you in more detail, please call the office on 01 4972544.