A pensioner  must have a guaranteed annual pension income for life to avoid having to set up a AMRF.

This ties up funds until they are 75 years of age. The level of guaranteed annual income needed at present is €12,700.

State pension from 30th March 2018 is €12,651

This leaves a shortfall for those whose only guaranteed annual income is the State Pension.

Revenue have announced the following changes:

The Social Welfare Christmas bonus and Living Alone Supplement paid to State Pension holders can now be taken into account when calculating their guaranteed income for the year.

This would allow pensioners to access monies tied up in AMRFS from December of this year and make the most of their tax free thresholds.