Before leaving office, the Minister for Social Protection, Heather Humphreys, set the wheels in motion for Ireland’s new auto-enrolment pension scheme, officially named My Future Fund. This initiative is a significant step in addressing the pension coverage gap and ensuring that more employees are financially prepared for retirement through workplace pension schemes.
What is Auto-Enrolment?
Under current legislation, auto-enrolment (AE) pensions are set to become mandatory for employers on 30th September 2025. The scheme aims to improve pension participation in Ireland, particularly in the private sector, where only 35% of employees currently have a retirement savings plan. Across the entire workforce, just 56% of workers are enrolled in a pension scheme, highlighting the need for workplace retirement plans.
How Will Pension Contributions Work?
To ease businesses and employees into the system, AE pension contributions will be phased in gradually over the next decade. The initial contributions will start at 1.5% of gross pay for the first three years, increasing incrementally over time. This structured approach ensures a smoother transition for employers and employees, reducing financial strain while encouraging long-term retirement savings.
Why Employers Must Act Now
With auto-enrolment pensions in Ireland becoming a legal requirement, business owners and HR managers must begin preparations now. Here’s why:
1. Regulatory Compliance: Businesses must meet their legal obligations under the new auto-enrolment retirement savings system.
2. Financial Planning: Understanding the cost implications of employer pension contributions is essential.
3. Employee Engagement: Educating employees about retirement planning and pension benefits improves retention and financial well-being.
How LHK Finance One Can Help
If your business has yet to set up a workplace pension scheme, now is the time to take action. At LHK Finance One, we provide expert guidance on auto-enrolment pension plans and occupational pensions. Our team, led by Carmel Dowd CFP QFA MSc CGMA and Turlough Gray ACA QFA, can help you:
1. Understand the auto-enrolment framework and its impact on your business.
2. Compare auto-enrolment pensions with other workplace pension schemes.
3. Develop a strategic approach to pension planning that aligns with your company’s goals.
Contact LHK Finance One Today
Ensure your business is prepared for Ireland’s auto-enrolment pension scheme before the deadline. Speak to our expert team about your pension scheme options and secure a strong retirement savings plan for your employees.
📧 info@lhkfinanceone.ie 📞 01 2055 600 – Option 1
By acting now, you can seamlessly transition into auto-enrolment pensions in Ireland, ensuring financial security for your employees and full compliance with pension regulations.