Auto-enrolment in Ireland: what the first opt out window means and where Zurich can help

On 1 January, almost 770,000 employees were automatically enrolled into My Future Fund. The scheme is designed to ensure that people build up a supplementary retirement income, rather than relying solely on the State pension.

• Over 763,000 employees, working for 104,000 employers have been automatically enrolled.
• Over €60 million of contributions invested to date.
• Over 5,000 employees have applied to join the scheme voluntarily*.

Within the first ten days of the opt-out window opening, the administrator of the fund, the National Automatic Enrolment Retirement Savings Authority (NAERSA) reports the only 5000 people have opted out since 1 July – a lower than expected number.**

Contribution levels

• Employee: 1.5% of gross salary
• Employer: 1.5% of gross salary
• State: contributes €1 for every €3 paid in by the employee

Planned increases

Contribution rates will step up over time, reaching 6% of salary from employees (with matching employer contributions) by 2035.

NAERSA positions My Future Fund as a way to improve financial security in retirement. According to NAERSA, market research indicates that eligible employees generally view auto‑enrolment positively.

Opting out: key dates and process

Since 1 July, a two‑month opt‑out window opened for those who were auto‑enrolled in January. Employee contributions paid to date are refunded if the opt‑out is completed. Employer and State contributions made over the previous six months remain invested in the participant’s fund until retirement.

After opting out, no further employer or State contributions are made. The employee can rejoin the scheme voluntarily or will be automatically re‑enrolled after two years, if still eligible.

Future opt‑out windows are planned for the two months following each step‑up in contributions, currently expected in January - February 2029, 2032 and 2035.

Participants can also suspend contributions at any time for any reason, without fully exiting the scheme.

Who should consider staying and who might look at alternatives?

Financial advisors have highlighted a key behavioural risk:

“The people most likely to leave are often the ones who should stay, while those with a genuine reason to opt out usually do not realise it.”***

In general, for standard‑rate taxpayers who would otherwise rely mainly on the State pension, My Future Fund can be a strongly recommended way to build additional retirement savings.

For higher‑rate taxpayers, there may be greater potential benefit in using a traditional occupational pension scheme, where:

• Income tax relief is available at the marginal rate, and
• The employer is willing to match or exceed the contribution levels required under auto‑enrolment.

However, this depends heavily on employer practice. Many of those enrolled in My Future Fund work for employers who do not currently operate a workplace pension scheme or have not contributed to one.

How Zurich Corporate Pensions can support

For employers and advisors, the emergence of My Future Fund creates a clear choice:

1. Rely on My Future Fund, or
2. Offer a qualifying occupational pension arrangement that can:

• Meet or exceed minimum AE contribution levels over time
• Provide greater flexibility in design (e.g. company determined contribution rates, additional voluntary contributions)
• Offer tailored investment options, communication and engagement tools for employees
• Provide access to established governance structures and trustee oversight

Zurich Corporate Pensions can support employers who want to design or adapt an occupational pension scheme that is potentially more attractive than My Future Fund,  especially for higher‑rate taxpayers.

Ensure their scheme is aligned with auto‑enrolment requirements, helping:

• Streamline their pension management
• Avoid duplicate coverage
• Manage employer cost over the contribution step‑up period
• Provide clear, simple communications to employees about their options

For employees, a well designed Zurich corporate pension can:

• Deliver tax‑efficient retirement savings, particularly for higher‑rate taxpayers.
• Offer greater choice and transparency in investment funds.
• Provide additional options on retirement for their savings.
• Provide increased employee engagement relating to their long-term financial well-being.

Sit alongside My Future Fund in a way that supports long‑term retirement planning, rather than short‑term opt‑out decisions.

Zurich has been helping employers and trustees in Ireland make the right decisions about their employees’ futures for over 40 years – we have experts across all strands from trusteeship to investment management through to onboarding and administration, contribution collection and payment of benefits. Employers who choose the Zurich Master Trust can rest assured that their employee benefits are in the best hands. Visit zurichcorporate.ie to find out more.

Sources:

*Gov.ie, February 2026

**5,000 people opt out of pension auto-enrolment

***Hundreds of thousands of workers in Ireland can opt out of auto-pension scheme next month – The Irish Times

The information contained herein is based on Zurich Life’s understanding of current Revenue practice and may change in the future.