Prepare for Auto-Enrolment
Before the Deadline. We Make It Easy.
Auto-enrolment is a system where employees are automatically signed up for a workplace pension scheme by their employer. The goal is to encourage individuals to save for retirement by making participation the default option, though employees can opt out. Employers also contribute to the pension, making it a joint effort to build long-term financial security. It’s a key step in addressing
gaps in retirement savings, and many countries, including Ireland, are introducing or enhancing such schemes to ensure better future outcomes for workers.
Our goal is to help you prepare, understand your options, and make informed decisions.
This is not a government website — it’s a resource to support you.
- Cash‑flow planning Employers will be required to match employee contributions (initially 1.5% of salary, with an additional 0.5% from the State). Early planning helps organisations manage the impact on payroll budgets, profitability, and workforce planning.
- Payroll and HR system readiness Employers must register with the MyFutureFund portal and ensure payroll systems can accurately calculate, deduct, and report contributions from day one.
- Employee communication Staff will naturally seek clarity on opting out, future contribution increases, and how auto‑enrolment interacts with any existing pension arrangements. Preparing clear guidance in advance supports smoother implementation.
- Assessment of existing pension schemes Some employers may already offer more favourable pension arrangements. A timely review allows organisations to compare benefits, costs, and determine whether to retain, adjust, or replace their current scheme.
- Avoiding compliance issues As participation is mandatory, insufficient preparation increases the risk of administrative errors, delays, or non‑compliance
- Rising contribution levels Contribution rates will increase automatically every three years until they reach 6% for employees, 6% for employers, and 2% from the State. This creates ongoing financial and operational considerations.
- Opt‑out periods and re‑enrolment cycles Employees may opt out after six months and will be re‑enrolled every two years if still eligible. Employers must be prepared to manage these recurring administrative requirements.
- Monitoring investment outcomes Employees will expect support in understanding how their pension savings are performing and whether additional contributions or savings strategies may be appropriate.
- Broader tax and retirement planning Auto‑enrolment is only one component of long‑term retirement planning. Many individuals will benefit from supplementary savings or tailored financial strategies.
- Personalised retirement planning Auto‑enrolment alone may not meet every individual’s retirement goals. Professional advice helps employees understand their long‑term needs and options.
- Employer guidance on cost and compliance Advisors can help employers assess long‑term payroll impacts, compare pension schemes, and navigate regulatory obligations with confidence.
- Evaluating existing pension arrangements A financial professional can determine whether an employer’s current scheme offers better value than MyFutureFund and recommend the most suitable approach.
- Optimising tax efficiency Pension contributions interact with income tax, USC, PRSI, and retirement lump‑sum rules. Expert advice ensures individuals and employers make informed, tax‑efficient decisions
| Timing | Outcome | Risk level |
|---|---|---|
| Prepare early | Effective budgeting, system readiness, clear staff communication, and informed scheme review | Low |
| Wait until the deadline | Increased likelihood of errors, rushed decisions, and operational pressure | Medium–High |
| Take no action | High risk of non‑compliance, payroll disruption, and employee confusion | High |
The goal is to encourage individuals to save for retirement by making participation the default option, though employees can opt out. Employers also contribute to the pension, making it a joint effort to build long-term financial security. It’s a key step in addressing
gaps in retirement savings, and many countries, including Ireland, are introducing or enhancing such schemes to ensure better future outcomes for workers.
The scheme seeks to bridge gaps in retirement savings and provide workers with greater financial stability, serving as a complement to the State Pension rather than a replacement. It will be administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA) under the supervision of the Pensions Authority.
Auto-enrolment is a new retirement savings system set to launch in Ireland on 1 st January 2026. It is designed to help employees save for their future by automatically enrolling eligible workers into a pension scheme. Employees aged 23 to 60, earning €20,000 or more annually, and not already part of a workplace pension plan will be included.
Under this arrangement, contributions are shared among the employee, employer, and State. For every €3 contributed by the employee, their employer matches an additional €3, while the State supplements it with €1. This means that each €3 invested by the employee results in a total savings of €7.
Under Ireland’s upcoming auto-enrolment pension system, employers have specific responsibilities to ensure compliance. Here’s an overview:
Employer Responsibilities
- Automatic Enrolment: Employers must automatically enrol eligible employees (aged 23-60, earning €20,000 or more annually) into the auto-enrolment scheme if they are not already part of a workplace pension plan.
- Contributions: Employers are required to match employee contributions, starting at 1.5% of gross salary and gradually increasing to 6% over ten years. Contributions are capped at a maximum salary of €80,000.
- Communication: Employers must inform employees about the scheme, their rights, and the benefits of participation. This includes providing details on opting out, re-enrolment, and contribution rates.
- Administrative Duties: Employers must facilitate the collection and transfer of contributions to the National Automatic Enrolment Retirement Savings Authority (NAERSA) through an online portal.
- Record-Keeping: Employers are expected to maintain accurate records of employee contributions and compliance with the scheme.
Penalties for Non-Compliance
Failure to comply with auto-enrolment obligations may result in penalties, including:
- Fines: Employers may face financial penalties for failing to enrol eligible employees or for not making the required contributions.
- Legal Action: Persistent non-compliance could lead to legal proceedings.
- Reputational Damage: Non-compliance may harm an employer’s reputation, affecting employee trust and public perception.
- The system is designed to minimize administrative burdens for employers, with NAERSA handling much of the operational aspects. However, staying informed and proactive is crucial to avoid penalties.
Benefits to employers and employees.
Auto-enrolment offers significant advantages for both employers and employees in Ireland:
Benefits for Employers
- Attract and Retain Talent: Offering a pension scheme makes employers more attractive to potential hires and helps retain existing employees.
- Shared Responsibility: Employers contribute to employee, pensions, fostering goodwill and demonstrating commitment to their workforce’s financial well-being.
- Compliance with Legislation: Participating in auto-enrolment ensures employers meet legal requirements, avoiding penalties and reputational risks.
- Streamlined Administration: The system is designed to minimize administrative burdens, with the National Automatic Enrolment Retirement Savings Authority (NAERSA) handling much of the operational work.
Benefits for Employees
- Financial Security: Employees build a retirement fund, supplementing the State Pension and ensuring a more comfortable future.
- Employer and State Contributions: For every €3 an employee contributes, the employer matches it with €3, and the State adds €1, significantly boosting savings.
- Ease of Saving: Automatic enrolment removes the need for employees to actively sign up, making it easier to start saving.
- Portability: Employees can carry their pension savings with them when changing jobs, ensuring continuity in their retirement planning.
Key statistics
- Enhanced Savings: For every €3 an employee contributes, the employer matches it with €3, and the State adds €1. This means a total of €7 is invested for every €3 contributed by the employee.
- Eligibility Criteria: Employees aged 23 to 60, earning €20,000 or more annually, and not already part of a workplace pension scheme, will be automatically enrolled.
- Gradual Contribution Increase: Contributions will start at 1.5% of gross salary and gradually rise to 6% over ten years, ensuring affordability for both employees and employers.
- Transferability: Pension savings are portable, allowing employees to carry their funds when
changing jobs. - Augmenting the State Pension: The scheme is designed to complement the State Pension, providing additional financial security in retirement. This framework is designed to fill gaps in retirement savings and promote a more secure financialfuture for individuals.
Setting up a compliant pension scheme
Getting your pension sorted might feel overwhelming, but it doesn’t have to be. With just a few simple steps, you can take control of your financial future. We’re here to guide you every step of the way. This page will help you kick-start the process and get your pension plan up and running. Let’s get started!
Where do I start
Good advice
Quality advice is priceless, which is why consulting a financial advisor is highly recommended. Our expert advisors can walk you through the process and help you choose the pension plan that best fits your needs. Alternatively, our Financial Planning Team is available to provide detailed information from Ireland’s leading pension providers (Zurich, Aviva, New Ireland, Irish Life, Standard Life, Royal London & others) and options to support your decision-making.
Is the State Pension enough to depend on for retirement?
A significant number of workers view the State Pension as their primary source of income, increasing the strain on an already overburdened system. Auto enrolment presents a practical solution to this challenge, promoting financial independence and encouraging individuals to recognize the importance of saving for their future.
What aligns most with my needs?
It’s often more advantageous to participate in your company’s existing pension scheme, if available, rather than depending solely on the auto-enrolment scheme.
Here’s why:
- Higher Employer Contributions: Company pension schemes typically offer more generous employer contributions compared to the minimum requirements of auto-enrolment.
- Greater Investment Flexibility: These schemes often provide a broader range of investment options, allowing you to tailor your pension to your financial goals.
- Comprehensive Access: Many company pension providers offer 24/7 access to your account, along with tools and calculators to help you plan at every stage of life.
- Personalized Support: You&’ll benefit from access to financial advice and resources, ensuring you’re on track to achieve your retirement objectives. Choosing a company pension scheme can provide enhanced support and flexibility for a secure financial future.
Securing your financial future begins with one of the wisest decisions you can make: starting a pension. To make the best choice, it's essential to be fully informed and understand all your options.
Padraic O’Brien
Manager
Christa Smith
Manager
Jemina Clone
Manager
Smith Vodka
Manager
Cristino Murfi
Manager
Christa Smith
ManagerCalculators can help you determine the amount of tax relief you might qualify for on your contributions.
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