Ireland’s new Auto-Enrolment Retirement Savings Scheme, known as My Future Fund, is set to begin on 30 September 2025. This initiative aims to improve pension coverage among workers who are not currently enrolled in an occupational pension scheme.

What’s Auto-Enrolment?

Auto-enrolment is designed to ensure that employees who are not already contributing to a pension will have a structured savings plan for their retirement. Under the scheme:

• Employees will be automatically enrolled but can opt-out after six months.
• Contributions will be made by the employee, employer, and Government.
• The scheme will be managed by the National Automatic Enrolment Retirement Savings Authority, under the supervision of the Pensions Authority.
• The regulations governing the scheme are outlined in the Automatic Enrolment Retirement Savings System Act 2024.

Who Will Be Automatically Enrolled?

Employees will be automatically enrolled if they:

• Are aged between 23 and 60.
• Earn €20,000 or more per year.
• Are not currently part of a pension plan.

If an employee previously contributed to a pension but has since stopped, they will also be enrolled if they meet the above criteria. Employees earning less than €20,000 per year or outside the age range can opt in voluntarily.

Employer Obligations:

Employers are required to comply with auto-enrolment obligations. Failure to do so may result in penalties and possible prosecution. Employers must contribute to employees’ pension funds but are not required to contribute to personal pension plans outside the scheme.

What Happens if You Change Jobs?

If an employee changes jobs, their pension contributions will follow them under the ‘pot-follows-the-member’ system. This eliminates the need to start a new pension scheme with each new employer.

Can You Opt Out?

Employees can opt out of the scheme after six months, with a refund of their contributions. However, opting out after contribution rate increases (in months 7 or 8 after a rate change) will only result in a partial refund.

Contribution Rates:

Contributions will increase gradually over a 10-year period:

For example, a worker earning €20,000 per year will see total annual contributions increase from €700 in years 1–3 to €2,800 from year 10 onwards.

Maximum Contributions:

Contributions are capped at €80,000 of gross annual salary. This means that:

• Employers will contribute a maximum of €1,200 per year in the first three years.
• Government contributions will be capped at €400 per year during the same period.
• Employees earning over €80,000 can still contribute, but employer and Government contributions will not apply to income above that threshold.

Re-Enrolment and Contribution Suspension:

• If an employee opts out or suspends contributions, they will be automatically re-enrolled every two years if still eligible.
• Employees can suspend contributions at any time, though refunds will not be issued.

Reach out to us:

For further details, visit the Department of Social Protection’s website, watch their explainer videos or email [email protected]. With auto-enrolment launching in September 2025, now is the time for employers and employees to prepare for this significant change in Ireland’s pension landscape.