State pension increases
State pension increases and revenue practice impacting holders of approved minimum retirement funds.
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 more information on the impacts of this increase please read our full TechTalk.
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 more information on the impacts of this increase please read our full TechTalk.
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