AMRF (Approved Minimum Retirement Fund)

The decisions made at retirement will a have long term impact on an individual’s retirement income. Before choosing retirement benefits, a retiree should review with his/her financial advisor the likely income position post retirement. This review will illustrate the gross and net income position with regard to retirement income streams. Also, of critical importance for ARF/AMRF investors is the measurement of a client’s risk profile. Through risk analysis the client’s financial advisor can, match client risk profile with the most appropriate investment portfolio. We can provide a comprehensive review of retirement options and illustrate to our clients, the post retirement income that will result from choosing a set of retirement benefits.

There are a number of conditions in place, which determine the ability to purchase an ARF and the value which can be transferred to the ARF. These conditions centre on the risk that the retiree may withdraw too much too soon from their ARF and not having enough funds to cover their later retirement years. Before being able to purchase an ARF, it is a requirement that the individual has some other source of minimum pension income. These qualifying conditions may also necessitate the buying of an AMRF.

An ARMF is very similar to an ARF, the primary difference is that a withdrawal can only be made once a year to a maximum of 4% of the value of the AMRF.

The decision to invest funds in an AMRF versus purchasing an annuity which produce a minimum retirement income, will depend on individual circumstances.

An AMRF automatically converts to an ARF when the retiree reaches 75 years of age or upon death of the retiree.

See more >> ARF