"In early 2026, the Irish pensions landscape will undergo one of its most significant shifts in decades.The introduction of auto-enrolment, a system that will automatically enrol many employees into a pension scheme, marks a pivotal step in strengthening retirement savings across the country. For workers, employers and the wider system, the implications are profound. Here's a comprehensive look at what auto-enrolment means for Ireland, how it works, who benefits most, how employers should view it, and-importantly-what lessons we can draw from other countries in Europe."
"How contributions stack up: In the first phase (Years 1-3), total contributions will begin at ~3.5% of salary (1.5% employee + 1.5% employer + 0.5% state top-up). Over a decade, contributions will phase upward until they reach around 6% employee + 6% employer + 2% state = ~14% of salary in later years. Contributions are calculated up to a salary ceiling (€80,000 in some designs)."
"Admin & oversight: A new independent body, the National Automatic Enrolment Retirement Savings Authority (NAERSA), will manage the scheme - enrolling workers, collecting contributions, investing funds, and ensuring portability (so your pot "follows" you across jobs). Opt-out & inclusion: Employees have an opt-out option after a minimum period, but will remain in the system by default if they don't act."
Auto-enrolment called My Future Fund will automatically enroll employees aged 23–60 earning over €20,000 who are not already in payroll-deducted pension schemes. Contributions start around 3.5% of salary (1.5% employee, 1.5% employer, 0.5% state) in the first three years and will phase up over a decade toward approximately 6% employee, 6% employer and a 2% state top-up, reaching about 14% of salary. A new independent authority, NAERSA, will administer enrollment, collection, investment and portability. Employees can opt out after a minimum period, otherwise they remain enrolled by default. The reform addresses a significant retirement-savings gap.
Read at Business Matters
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