What is auto-enrolment?
Auto-enrolment is a retirement savings system that aims to ensure every worker has access to funds that support them in retirement. Here are the five things you need to know, as an employee:
- Auto-enrolment will be called ‘My Future Fund’ and run by a new Government body, the National Automatic Enrolment Retirement Savings Authority (NAERSA).
- All employees aged between 23 and 60, earning over €20,000 per annum and not currently contributing to a workplace pension via their payroll, will be enrolled into My Future Fund.
- Each employee, their employer and the government will contribute to an auto-enrolment fund.
- Auto-enrolment does not apply to self-employed.
- The planned launch date is 1st January 2026.
Find out more details in our Beginners Guide to Auto Enrolment and our FAQs.
Are you an employer?
Find out how auto-enrolment may impact your company and what you can do for your employees.
Find out more >
How should you prepare?
No current pension fund
Your employer must provide either a workplace pension or My Future Fund. If you haven’t already joined your employer’s workplace pension or don’t have access to one, you will be automatically enrolled into My Future Fund from 1st January 2026. If you haven’t heard from your employer yet, reach out to them to understand your options.
Existing private pension
If you are contributing to your own private pension not via payroll, you will still be enrolled into My Future Fund. You can use this opportunity to discuss with your employer if an alternative arrangement will be offered to you via payroll in advance of auto-enrolment. Also, consider reviewing your private pension to ensure you’re on track to achieve your retirement goals.
Existing workplace pension
If you are a member of a workplace pension scheme with your employer, you won’t be impacted by auto-enrolment. If your employer offers a workplace pension but you don’t participate in it, you should consider signing up. Either way, have a chat to your employer or your workplace pension advisor about your retirement goals and ensure you’re on track.
Questions to ask your employer
These questions can help you review your current situation and determine what is the best pension solution for you.
- How are you responding to the auto-enrolment requirements?
- Do you offer a workplace pension scheme? If so, what are the contribution rates?
- How can I join the existing workplace pension scheme?
- How can I keep track of my workplace or My Future Fund pension scheme?
- Who can I contact for personal advice?
What’s the difference: state pension, auto-enrolment, workplace pension?
| State pension | My Future Fund (auto-enrolment) | Workplace Pensions | |
|---|---|---|---|
| What is it? | This is the contributory old age pension you can claim starting from 66 years of age. | This is in addition to the State pension, for those who don’t have a workplace pension scheme (and meet other eligibility criteria). | This is a pension arrangement set up by your employer to fund additional income for you at retirement. |
| Eligibility criteria |
|
|
The employer can decide to make membership of the workplace pension compulsory or optional. |
| Contributions (as of 1 January 2026) |
Depending on class. Class A (employees between 16 and 66 not receiving State pension (1)) and Class S (Self-employed) pay 4.2% of total income (or at least €650 for class S). |
My Future Fund will adopt a phased introductory process. From launch date, contributions in years 1-3 will start at: employee 1.5%, employer 1.5%, State 0.5% of overall earnings to a maximum of E80,000. These amounts will increase as My Future Fund progresses. |
Up to you within certain limits.
Employers determine what they contribute. |
| Tax benefits / credits | Insured PRSI Contributions (including credits) gives you access to certain social welfare benefits including contributory state pension subject to meeting minimum requirements. | The State contribution is 0.5% of the employee’s eligible earnings in years 1-3. This will increase as My Future Fund progresses. | Income tax relief between 20% and 40% depending on your tax band. Relief is limited to age-related earnings percentage limits from 15% to 40%. Tax relief is capped at the total earning limit currently €115,000. |
| Investment options | Not applicable. | Limited investment options. | Numerous investment funds available to suit different risk levels and needs. |
| Retirement age | Starting from State pension age (currently 66). | State pension age (currently 66). | The normal retirement age as set out when the workplace pension was established. Early access on leaving employment from age 50 with the permission of your employer. |
| Drawdown options | Regular payments calculated on qualifying PRSI contributions. | Currently limited to lump sum payment. | Tax free lump sum alongside access to Approved Retirement Fund (ARF) and/or annuities. |
Learn more
FAQs
All employees that satisfy the following eligibility criteria will be automatically enrolled:
- Aged between 23 and 60.
- Earning over €20,000 per annum.
- Not already paying into a work or private pension through payroll.
If you are eligible for My Future Fund, the new government body NAERSA will automatically enrol you. You don’t need to do anything.
Yes, My Future Fund will be mandatory for all eligible employees.
Employees, employers and the Government contributions automatically increase over time as the number of years of participation in the AE scheme increase: This table* shows the rates you, your employer and the Government will pay:
You can opt-out after six months, but you will be automatically re-enrolled again after two years if still eligible for the scheme.
A workplace pension scheme is a pension provided by your employer to help you save for retirement. It may have different benefits and contributions rates compared with AE. Speak to your employer for more information.
It's generally considered more beneficial to join your company's existing pension scheme, if they have one in place, rather than relying solely on the auto-enrolment scheme. You should speak to your employer or financial advisor to find out what is best for you.
*Citizens Information website, 2025.
The information contained herein is based on Zurich's understanding of current Revenue practice as at July 2025 and may change in the future.