Around 800,000 Employees Automatically Enrolled in Workplace Pensions as My Future Fund Finally Begins.

Around 800,000 employees across Ireland have been enrolled in a pension scheme for the first time after auto-enrolment (MyFutureFund) began on 1 January 2026. 

These workers, aged between 23 and 60 earning over €20,000 per year, will pay 1.5% of their salary over the first three years of the scheme.

These contributions must be matched by their employer, and the State will top up their pension by a further 0.5%. 

In years 4 – 6 of the new scheme, employees will contribute 3% of their salary, and 4.5% in years 7 – 9. After 10 years, 6% of their earnings will go towards their workplace pension. 

These contributions will be matched by their employer, and then topped up by the State at a 1:3 ratio. 

This means that if after 10 years an employee contributes €6,000 per year to their pension, their employer will also contribute €6,000 and the State will top it up by €2,000, so that a total of €14,000 goes towards their retirement savings.

While there are certainly benefits to auto-enrolment, they are not a cure all to Ireland’s future pension problems. 

In the UK, which introduced a similar scheme over a decade ago, around 1 in 10 newly enrolled employees opt out of the auto-enrolment workplace pension scheme.

If Ireland follows a similar trajectory to its neighbours, around 80,000 workers may decide to stop contributions for a variety of reasons.

But those who have been automatically enrolled must remain in the scheme for at least the first 6 months before they are given the option to opt out.

Unlike Personal Retirement Savings Accounts (PRSAs), which you can generally begin to draw down from the age of 60 and take a tax-free lump sum, employees who have paid into a workplace pension under auto-enrolment will not receive payments until they reach State Pension age – which is currently 66. However, this could be increased to 67 in the future. 

NAESRA, the authority responsible for administering the programme, will be responsible for payments when the time comes.

Retirees will receive their MyFutureFund payments on top of their State Pension entitlements.

Auto-enrolment is likely to create more awareness and a culture around retirement savings. But if you wish to contribute more to your pension, there are other options that you can explore. 

PRSAs allow you to contribute a higher percentage of your salary with tax relief. This percentage increases as you get older, with those aged 60-65 able to contribute up to 40% of their salary.

The success of auto-enrolment in Ireland will be linked to employee retention. The UK’s successful workplace pension scheme suggests that the vast majority of employees are happy to contribute to their retirement savings – especially if these contributions are automatic and matched by their employer.

If you’re unsure about how auto-enrolment will affect you or whether you should begin contributing to a PRSA instead, speaking to a financial advisor will help you make the best decision for your retirement.