What Does the New Auto-Enrolment Pension Scheme Mean for You?
For years, Ireland has faced a pension coverage gap, with nearly 750,000 private-sector workers lacking retirement savings. To address this, the Government is launching the Auto-Enrolment Pension Scheme, set to begin on 30 September 2025.
This initiative aims to ensure that workers without a pension are automatically enrolled, helping them build financial security for the future. But what does this mean for you?
What Is Auto-Enrolment?
Auto-enrolment is a mandatory workplace pension scheme for employees aged 23-60, earning €20,000 or more per year, who are not already in a pension plan.
No action is required from employees—if you qualify, you’ll be automatically enrolled.
Contributions will come from you, your employer, and the Government—boosting your savings faster than individual contributions alone.
Your pension follows you if you switch jobs, so your retirement savings remain consistent.
For those unsure how this fits into their overall retirement planning, we're happy to help clarify how this scheme works alongside any existing pension arrangements, just drop us a line and we can schedule a chat.
How Will Contributions Work?
One of the biggest benefits of auto-enrolment is the three-way contribution system:
The table above sets out the rates you, your employer, and the Government will pay
For every €3 you contribute, your employer adds €3, and the Government contributes €1—effectively giving you free money to grow your pension fund.
If you're wondering how this compares to tax relief on private pensions, or whether staying in auto-enrolment makes the most financial sense for you, we can provide tailored advice on optimising your retirement savings.
Can You Opt-Out?
Yes, but with conditions. Employees can opt out after 6 months, but only within a specific window. If you opt out, your contributions will be refunded—but employer and Government contributions will not.
Auto-enrolment is designed to make staying in the scheme more beneficial than opting out, ensuring long-term financial security.
How Does This Compare to Current Pension Options?
Unlike traditional workplace pensions, you don’t need to make any decisions—enrolment, fund management, and increasing contributions happen automatically.
However, private pensions may offer greater flexibility in terms of fund choice, contributions, and tax relief. If you already have a pension, you won’t be affected by auto-enrolment.
If you're self-employed or currently paying into a private pension, this is an important moment to assess whether auto-enrolment aligns with your existing retirement plans—or if you should be making additional contributions elsewhere.
WHAT Are the Next Steps?
If you’re eligible, your employer will enrol you automatically from September 2025. Over time, your contributions will grow, matched by your employer and the Government.
If you’re an employer, now is the time to prepare—understanding contribution obligations and ensuring compliance with the scheme.
If you already have a pension, this change won’t affect you—but it’s always worth reviewing your pension strategy.
Need help deciding how auto-enrolment fits into your financial future? Get in touch with the team at Financial Planning Matters, and we can walk you through the best approach for your retirement savings.
Auto-Enrolment Pension: FAQs
1. Who is eligible for auto-enrolment?
Anyone aged 23-60, earning €20,000+ per year, and not already in a pension scheme will be automatically enrolled.
2. When does auto-enrolment start?
At the moment, the scheme is set to begin on 30 September 2025, with contributions phased in over 10 years.
3. How much do I have to contribute?
You’ll start by contributing 1.5% of your salary, rising gradually to 6% after 10 years. Your employer will match this, and the Government will add one-third of your contribution.
4. Can I opt out?
Yes, but only after 6 months. If you opt out, you’ll get your contributions refunded, but employer & Government contributions won’t be returned.
5. What if I already have a pension?
If you’re already contributing to a private or workplace pension, auto-enrolment won’t affect you.
6. What happens if I change jobs?
Your pension moves with you—it’s not linked to a single employer, ensuring continuous savings growth.
7. Where will my pension contributions be invested?
Your contributions will go into Government-backed pension funds, with different risk options available.
8. How can I check my auto-enrolment pension balance?
A new online platform will allow workers to track contributions and fund performance in real time.
Still have questions? Reach out to us here at Financial Planning Matters for personalised pension guidance.