Simon Harris (Wicklow, Fine Gael)
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The concern is that these funds will run out because people are living longer. It is designed to slow down the process to ensure a pension pot lasts longer.

The current imputed distribution rate of 5% per annum applying to AMRFs invested in PRSAs with assets of €2 million or less is higher than the current yields or interest rates paid on most single or joint life pension annuities sold to individuals aged under 70 years. In other words, the 5% imputed distribution rate requires individuals in this age range to draw down more from their AMRF funds each year than would be paid to them under a pension annuity arrangement underpinned by the same value of assets.