The Society of Actuaries in Ireland (SAI) has said the Finance Bill should concentrate on ensuring that individuals have secured a sufficient minimum income for life rather than on operating an Approved Minimum Retirement Fund (AMRF).

It said security of income for pensioners could be best achieved by specifying the minimum level of guaranteed income, inclusive of state benefits, that each individual should have for life at retirement before utilising an Approved Retirement Fund (ARF).

This approach would avoid putting seriously at risk the interests of the great majority of retirees who do not have substantial funds and whose primary retirement need is security of income, the SAI said. However, it would also allow the small minority of retirees who have substantial retirement funds and ready access to professional advice to take advantage of the proposed flexibility in retirement planning.