Approved Retirement Funds (ARFs) allow people
to keep part or all of their retirement fund invested post
retirement age. Income can be drawn from an ARF as and when
the holder wishes, subject to an imputed minimum withdrawal of 5%
of the value of the fund per annum. Currently, an individual
can invest in an ARF where they can show a guaranteed yearly income
of €18,000 (or by making a €119,800 investment in an
Approved Minimum Retirement Fund (AMRF)).
The Finance Bill 2013 proposes broadening the access to ARFs by
reducing the minimum access requirements to pre-2011 levels.
Prior to February 2011, the specified income threshold requirement
stood at €12,700 and the Approved Minimum Retirement Fund
(AMRF) / annuity purchase threshold was €63,500. These
revised pre-2011 limits will apply for three years from the
passing of the Finance Act 2013. The higher limits are due to
be reinstated by the Finance Act 2016.
