What is an AMRF?

My Personal Pension has recently matured and I have been told I must, after taking my tax free cash, invest in an AMRF. I understand there are restrictions on funds I place into an AMRF but I am unsure of the detail. Can you clarify this for me?

An AMRF is an Approved Minimum Retirement Fund. It is commonly used for those who decline the option of using their retirement fund to purchase an Annuity – an income for life, and where the option of investing straight into an ARF (Approved Retirement Fund) is not allowed under Revenue rules.

Whilst an AMRF allows you to retain ownership for your pension monies, there is a limit to the amount you can withdraw from your AMRF before the age of 75. You can only withdraw 4% per annum of the value of the fund.

The AMRF minimum investment amount is currently €63,500.

A broad outline of the Revenue rules that must be satisfied in order not to be required to invest in an AMRF are:

  • You must have a minimum guaranteed income for life, currently set at €12,700 per annum or
  • You must already have previously invested €63,500 from the proceeds of another Pension in an AMRF.

The Revenue Definition of satisfying the €12,700 per annum guaranteed income limit is quite strict and essentially means state pension or annuity income. If you are in receipt of the full Irish State Pension then the Revenue income limit will be satisfied and you will not have to invest in an AMRF.

I hope the above information gives you a good understanding of the AMRF process.  As always this article is provided in order to give a simple outline of the AMRF process and it is crucial you seek out financial advice before making your decision.

Call or email us today and we would be delighted to guide you through your options

Michael Coburn BBS, QFA, FLIA, LCOI, RPA, SIA

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