ARF €12,697 Guaranteed income?

H

HAL9000

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Hi All

I know that to avail of an ARF the funds must come from a source such as AVCs and that I must have a guaranteed for life annual income of at least €12,697. My question relates to the source of this income. Must it come from a pension such as an occupational or social welfare pension ? Can it come from other investment sources and if so what type of investments?


HAL9000
 
I believe that it can come from any source but it must be guaranteed which, in pratice, may restrict it to something like pension annuities or the like?
 
In practice, it really is only Pension Income that can be considered as guaranteed.

Rental Income, dividends etc are not guaranteed therefore do not qualify
 
Thanks for the replies ClubMan and boaber, I thought that it probably was only pension income of some sort that could be considered. However it seems strange that a person could have a very large, relatively secure income from other forms of investments but this would not qualify. But as you say boaber these are not guaranteed.
 
A person with significant means could presumably buy an annuity even if the money was not from a pension fund and there by guarantee the necessary level of income? Whether or not this would be the most prudent thing to do would obviously depend on the individual's specific circumstances...
 
Well even if they did not have the guaranteed income...all they need to do is stick about €63,500 in an AMRF and they can put the rest into an ARF.
 
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