Urgent Update: Ireland’s Auto-Enrolment Numbers Plunge to 750,000

UPDATE: New reports confirm that fewer than expected workers will be enrolled in Ireland’s new mandatory workplace pension scheme, My Future Fund. The Government now anticipates that only 750,000 employees will participate, a drop of 50,000 from earlier estimates of 800,000.

This significant change comes amid escalating tensions between the Department of Social Protection and various employer and pension groups. With the auto-enrolment set to begin in January, the implications are urgent for both workers and employers alike.

Starting January, the scheme mandates that anyone aged between 23 and 60 earning more than €20,000 across one or more jobs will automatically be enrolled in the My Future Fund unless they are already part of a private pension scheme. Employers have a critical deadline approaching: the November payroll, with necessary details due by around November 14th. Failure to provide evidence of pension contributions by this date will lock employees into the new scheme for at least six months.

The Department of Social Protection has raised alarms over some employers allegedly misinforming staff about their obligations regarding pension schemes. “Employers are reminded that it is an offence to hinder an employee from participating in the My Future Fund scheme,” the department stated, indicating that violations will be thoroughly investigated.

Meanwhile, the Society of Actuaries has issued a warning to the 100,000 workers still considering their options. They advise employees to “look before they leap” into the My Future Fund, highlighting that existing employer-sponsored schemes may offer more benefits, including greater flexibility for early retirement and additional contribution options. Roz Briggs from the Society emphasizes the importance of these factors, especially for individuals, particularly women, who may have gaps in their service years due to caregiving.

Additionally, Joyce Brennan, CEO of the Irish Association of Pension Funds, urged workers to “explore their options.” She noted that comparing the benefits of the My Future Fund with employer pension plans is crucial, as the right choice can significantly influence both future savings and current take-home pay.

The Government has allocated €154 million in the Budget 2026 to support the auto-enrolment scheme, anticipating that €462 million will be deducted from workers’ salaries for their contributions to the My Future Fund.

This developing situation requires immediate attention. Workers and employers must act swiftly to ensure compliance and make informed decisions about their financial futures. Stay tuned for further updates on this pressing issue.