Auto-Enrolment Pension – My Future Fund
What is Auto-Enrolment? Also known as My Future Fund?
Auto-enrolment is a new retirement savings system, being introduced in Ireland to help workers to build up a pension.
Auto-enrolment is short for Automatic Enrolment Retirement Savings System.
Why are these changes being introduced to pensions in Ireland now?
Currently, one in 3 Irish workers will have no additional income outside of their State pension entitlements, when they retire.
As the State pension currently stands at ~€15,000 per annum, many pensioners will find themselves with a low standard of living, when the time to retire comes – unless something changes.
The Auto enrolment scheme aims to help future retirees have a more financially secure future. It’s designed to make saving for retirement easier and more accessible, especially for those who currently have no pension coverage.
Who Will Be Automatically Enrolled & Who Will Not?
Under this scheme, employees who fulfil the 3 conditions below, will be automatically enrolled in a workplace pension plan, and both the employer and the government will contribute alongside the employee.
3 Eligibility Criteria:
- Employees aged between 23 and 60
- Earning €20,000 or more per year
- Who aren’t already in a pension scheme (eg. occupational pension scheme)
If an employee meets these criteria, they’ll be automatically enrolled — no action needed on their part.
And if an employee doesn’t meet this criteria, they can still opt to enrol, as long as they are not already contributing to a pension plan.
Can employees opt-out of (leave) the pension scheme?
After being enrolled, the employee must stay in the pension scheme for at least 6 months. There will then be a window for the employee to opt out, and contributions refunded.
Assuming the employee remains eligible, the employee will be automatically re-enrolled once 2 years have elapsed.
How Much Will It Cost?
Here’s how contributions will work (based on current proposals):
- Employee: Starts at 1.5% of gross salary, rising to 6% over time
- Employer: Matches the employee’s contribution
- Government: Adds a top-up (e.g. €1 for every €3 contributed by the employee)
This means that an employee contributing €60 per month could see a total of €140 going into their pension pot.
This table explains the expected increase in contributions over the next 10 years:
| Year of scheme | Employee Contribution | Employer Contribution | State Contribution |
| 1-3 | 1.5% | 1.5% | 0.5% |
| 4-6 | 3% | 3% | 1% |
| 7-9 | 4.5% | 4.5% | 1.5% |
| 10 | 6% | 6% | 2% |
What Does It Mean for Employers?
If you run a small business in Ireland, auto-enrolment will bring new responsibilities for employers:
- You’ll need to facilitate payroll deductions for employee contributions.
- You’ll be required to match employee contributions, as per the table above.
- You’ll need to engage with the employer portal set up by NAERSA ( the body managing My Future Fund – see more below)
- Access to an employer portal will be organised using the same credentials as ROS – this portal will provide information about contributions paid and owed, and also allow for direct debit arrangements to be set up
The good news? You won’t need to set up or manage a pension scheme yourself — the new State agency NAERSA will handle that.
The role of the National Automatic Enrolment Retirement Savings Authority (NAERSA)
The National Automatic Enrolment Retirement Savings Authority (NAERSA) will administer the auto-enrolment scheme, leaving minimal administrative work for employers. NAERSA will act as the caretaker of the employee’s interests and savings.
NAERSA will determine which employees are eligible for auto-enrolment using Revenue payroll data, and it will authomatically enrol them.
It will collect all employee, employer and State contributions, and invest the money on the employee’s behalf. A default investment strategy will be in place, but some alternative investment options will be available for those who may wish to make an active investment choice. NAERSA will allocate any investment returns to their savings pot. Employees will keep one savings pot as they move from job to job – this is known as the ‘pot-follows-member’ approach.
NAERSA will operate an online portal for employees, to manage employee opt-outs, opt-ins, suspension of contributions and re-enrolment. It will also operate an online portal for employers, to facilitate the payment and monitoring of contributions.
NAERSA will pay employees State Pension age which is currently 66.
Other Sources of Information:
Auto-enrolment retirement savings system for employees
Auto-enrolment pension – My Future Fund
Auto-enrolment: Your questions answered
Auto-enrolment is a positive step for employees — but for employers, it does mean additional administration, especially around payroll and compliance.
If you’re feeling unsure about what’s required or how to prepare, you’re not alone.
💬 We’re here to help you navigate the changes, keep your records in order, and make the transition as smooth as possible.
Whether you need help updating your payroll systems, budgeting for contributions, or communicating with your team — we’ve got you covered.
👉 Get in touch today for friendly, professional support. Phone – 01 49106347 or email: info@adeptaccounting.ie
