With the official launch of the State-backed MyFutureFund workplace pension scheme on 1 January 2026, retirement saving in Ireland changed for many employees. For eligible private sector workers who do not currently have a pension arrangement, participation became automatic through their workplace.
Table of Contents:
- Ireland’s auto-enrolment pension: everything you need to know
- What is auto-enrolment (my future fund)?
- How auto-enrolment contributions work
- What it means for your retirement (benefits & trade-offs)
- What employees should do now
- Auto-enrolment vs other pension options such as private pensions, Personal Retirement Savings Account (PRSAS), Added Voluntary Contributions (AVCs)
- FAQ
What Is Auto-Enrolment (My Future Fund)?
Ireland’s new State-backed workplace retirement savings scheme, known as My Future Fund, operates through an auto-enrolment system. This means it automatically enrols eligible employees who do not already have a pension, removing the need to set one up themselves.
The aim is to make pension saving the default. Contributions are taken directly from salary, with additional contributions from employers and the State, helping individuals build retirement savings over time.
Ireland has historically had low levels of supplementary pension coverage. Auto-enrolment addresses this by making saving simple, consistent, and accessible.
Its core goals are to:
- Increase participation in pension saving
- Support workers without access to occupational pensions
- Provide employer and State contributions to encourage long-term saving
The scheme is administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA) , which oversees its operation alongside regulatory bodies.
Who Is Eligible & Who Will Be Auto-Enrolled?
Auto-enrolment is designed for workers who do not currently have a pension.
You are automatically enrolled if:
- You are aged between 23–60
- You earn €20,000 or more per year across all employments
- You are not actively contributing to a qualifying pension arrangement through payroll
If all three conditions apply, you are automatically enrolled into My Future Fund, with contributions deducted through payroll.
You are not automatically enrolled if:
- You are under 23
- You are over 60
- You earn under €20,000 per year across all employments
- You already have a pension (e.g. occupational pension, PRSA, or public sector scheme etc.)
You must stay in the scheme for at least six months. After this, you have specific two‑month opt‑out windows: in months 7 and 8 after you first join, and in the two months following each tri‑annual increase in the contribution rate. If you opt out, you will receive a refund of your own contributions, whilst employer and state contributions remain invested in your pot, and you can choose to re‑enrol at any time.
Outside these opt‑out windows, and once the initial six‑month period has passed, you may instead suspend your contributions. Suspension must last for at least one year and no more than two years, and during this time employer and state contributions also stop. No refund is given when you suspend, as all contributions stay invested. If you opt out or suspend, you will be automatically re‑enrolled after two years, provided you still meet the eligibility criteria.
Important note for public sector employees
Most public sector workers – including teachers, nurses, Gardaí and civil servants – already have a public service pension. These employees are typically not auto-enrolled.
If you are a public sector employee and want help understanding how auto-enrolment fits alongside your public service pension or Additional Voluntary Contribution (AVC) options, Cornmarket’s Retirement Planning Service can help.
How Auto-Enrolment Contributions Work
Auto-enrolment is designed to be simple and cost-effective. Three different parties contribute:
- You (the employee)
- Your employer
- The State
Contribution rates increase gradually over time in set stages. This phased approach is designed to help employees and employers adjust to pension deductions without a significant immediate impact on take-home pay. Scroll to bottom of page to see a breakdown of how contribution rates increase gradually over time.
Roughly, over the next 10 years, contributions will rise in stages:
- Employee rises from 1.5% → 6%
- Employer rises from 1.5% → 6%
- State top-up remains proportionate
Once fully phased in, total pension contributions will be around 14% of gross salary.
If you change jobs – within the public or private sector – your My Future Fund pot stays with you. It is not linked to your employer.
Example for a private sector employee earning €40,000:
This example helps explain how contributions can grow:
Year 1:
- Employee: €600 (1.5%)
- Employer: €600
- State: €200
- Total yearly contribution: €1,400
After 10 years:
- Employee: €2,400 (6%)
- Employer: €2,400
- State: €800
- Total yearly contribution: €5,600
This is a simplified example for illustration only and does not guarantee future outcomes.
What It Means for Your Retirement (Benefits & Trade-Offs)
Auto-enrolment comes with several important advantages, especially for workers beginning their retirement savings journey.
Key benefits:
1. You receive employer and State contributions
This is one of the strongest features of auto-enrolment. For every contribution you make, your employer and the State also contribute. Even small monthly amounts can grow significantly over time.
2. Savings grow automatically
Once enrolled, your contributions are taken from your salary without any action on your part. This eliminates friction and increases the likelihood of long-term savings.
3. Strong oversight and regulation
Your retirement pot will be overseen by:
- National Automatic Enrolment Retirement Savings Authority (NAERSA), a statutorily independent body created to administer MyFutureFund,
- The Pensions Authority
- Specialist investment managers
4. Supports long-term financial security
Auto-enrolment is designed to reduce reliance on the State Pension, which may not be enough to support a comfortable lifestyle on its own.
Trade-offs and things to consider:
1. Reduced take-home pay Employee contributions lower net income, particularly as contribution rates increase.
2. Not as flexible as other pension types
Tax treatment differs from some existing pension arrangements.
Auto-enrolment uses a state contribution model rather than the traditional pension tax relief structure used by some pension products. Depending on personal circumstances, alternative arrangements such as PRSAs or AVCs may offer different tax considerations.
For some employees, particularly those already contributing to pensions, it may be helpful to review how different retirement savings options fit within their broader financial plan.
3. May not meet your full retirement goals
Auto-enrolment provides a foundation, but additional planning may be needed to meet long-term retirement goals – may still want to explore:
- PRSAs
- Retirement planning reviews
What Employees Should Do Now
Auto-enrolment is now in place. Whether it applies to you directly or not, it’s a good time to review your overall retirement plan.
1. Check your current pension arrangements Understand what you already have in place and what it’s projected to deliver.
2. Review your budget
Auto-enrolment increases contributions over time. Planning ahead can help avoid financial stress.
3. Decide whether to opt in (if not automatically enrolled) If you are outside the automatic criteria, you can still choose to participate.
4. Consider long-term goals
Think about the lifestyle you want in retirement and whether current savings are enough to support it.
Note for public sector employees
Because public sector pension benefits are based on service and salary, many employees explore AVCs to:
- Retire earlier
- Increase pension benefits
- Boost lump sums
- Close service gaps
Cornmarket supports thousands of public sector workers with these decisions. Learn more about how pension top ups (AVCs) help you invest in your future, to help you plan for the lifestyle and the financial security you would like in retirement.
Auto-Enrolment vs Other Pension Options (Private Pensions, PRSAs, AVCs)
Auto-enrolment is one type of pension but not the only one. Understanding how it compares can help you choose the right mix.
Auto-Enrolment:
- Simple, automatic, State-backed
- Employer and State contributions
- Limited flexibility
- For workers with no pension
PRSAs:
- Available to anyone
- Flexible contribution levels
- Often used by those without an occupational pension
- No employer contribution unless required by law
Employer pension schemes:
- Common across many public and private sector organisations
- Strong benefits, including defined benefit pensions
- Contributions vary across roles
- Auto-enrolment usually does not apply if you have one
AVCs (Additional Voluntary Contributions):
Additional Voluntary Contributions may be suitable for both private and public sector workers who want to increase their benefits at retirement in a tax efficient manner.
When auto-enrolment may be enough
- If you currently have no pension
- If you prefer a straightforward pension solution with automatic contributions and minimal ongoing administration
- If employer contributions are valuable to you
When you may want more
Many public sector workers need additional planning to:
- Retire earlier
- Maintain income in retirement
- Optimise tax relief*
- Boost benefits beyond the standard public service pension
*Tax treatment depends on individual circumstances and may change.
If you are unsure of what your next steps should be, our Retirement Planning Service helps employees To plan for a secure and comfortable retirement.
Auto-enrolment marks a significant shift in how people in Ireland save for retirement. It makes pension saving more accessible and ensures more workers begin building long-term financial security.
For public sector employees, auto-enrolment may not apply directly – but understanding it is still important. You may want to review your pension benefits, explore AVCs and consider how your long-term plans align with your retirement goals.
If you want support, we can help you make confident decisions about your future. Book an appointment with us for a time that suits to discuss your financial wellbeing needs or call (01) 420 6780.
Warning: If you invest in this product, you may lose some, or all, of the money you invest.
Warning: This product may be affected by changes in currency exchange rates.
Warning: The value of your investment may go down as well as up.
Warning: Past performance is not a reliable guide to future performance.
Warning: If you invest in this product you will not have any access to your money until you receive your Superannuation Benefits.
Sources:
https://myfuturefund.ie/
https://myfuturefund.ie/naresa
https://www.citizensinformation.ie/en/money-and-tax/personal-finance/pensions/personal-retirement-savings-accounts/
https://pensionsauthority.ie/
https://www.revenue.ie/en/tax-professionals/tdm/pensions/chapter-27.pdf
https://healthservice.hse.ie/staff/pensions/supplementary-pension/
https://myfuturefund.ie/faq-page
FAQs
What is auto-enrolment pension in Ireland?
A State-backed pension system that automatically enrols eligible employees who do not already have a pension.
Who will be eligible for auto-enrolment?
Employees aged 23–60 earning €20,000 or more who do not already have a pension.
How much do I contribute?
Contributions start at 1.5% of salary for employees, matched by employers, with an additional State top-up.
Please Note: Contribution rates increase gradually over time in set stages.
When did auto-enrolment contributions begin?
The MyFutureFund framework officially went live in January 2026, aligning perfectly with the start of the standard financial tax year. Payroll deductions for eligible workers are now legally required to process automatically.
Can I opt out?
Yes, after six months, but you will be re-enrolled every two years if you meet the eligibility criteria.
Does auto-enrolment replace PRSAs or occupational pensions?
No. It is an additional system designed for workers without pension cover.
This article is for general information purposes only and does not constitute financial advice. It does not take account of your individual circumstances. You should seek personalised advice before making any financial decisions. Information correct as of June 2026 and subject to change.
Cornmarket is not responsible for any content or advice on external websites.
To learn more or speak with one of our financial planning consultants please get in touch.