Auto-enrollment pensions are coming in 2026

In early 2026, the Irish pension landscape will see one of the most significant changes in decades: the introduction of auto-enrolment,

A system that automatically enrolls large numbers of workers into a pension system represents a crucial step in strengthening retirement provision across the country. The implications are profound for workers, employers and the entire system.

Here’s a comprehensive overview of what auto-enrolment means for Ireland, how it works, who benefits most from it, how employers should view it and, importantly, what lessons we can learn from other countries in Europe.

What exactly is automatic registration and how does it work in Ireland?

Under the new scheme, called My Future Fund, most employees who do not currently participate in a workplace pension or pay-deductible pension will be automatically enrolled.

Important admission criteria:

• Between the ages of 23 and 60.
• Earnings over €20,000 per year in all jobs.
• Not already in a qualified company or private pension system through wage deduction.

This is how the contributions stack up:

• In the first phase (years 1-3), total contributions start at around 3.5% of salary (1.5% employee + 1.5% employer + 0.5% state allowance).
• Over a decade, contributions will gradually increase until they reach about 6% employee + 6% employer + 2% government = ~14% of salary in later years.
• Contributions are calculated up to a salary cap (in some versions €80,000).

Administration and supervision:
A new independent body, the National Automatic Enrollment Retirement Savings Authority (NAERSA), will manage the system – enrolling workers, collecting contributions, investing funds and ensuring portability (so that your pot “follows” you across jobs).

Deregistration and admission:
Employees have an opt-out option after a minimum period of time, but will remain in the system by default if they do nothing.

Why it matters: The pension gap in Ireland

Ireland faces a major retirement planning challenge. Around one in three employees in the private sector currently has no additional pension beyond the state pension.
Because the state pension alone is unlikely to meet many people’s retirement life expectations, auto-enrolment aims to close this gap by making saving automatic and collective.

By moving away from relying solely on the consent of individuals (which many do not), the system aims to increase coverage, contributions and ultimately pension outcomes. One comment said: “Ireland is the last OECD country to introduce such a system.” WTW

Who benefits the most?

1. Workers without pension
   Those who benefit most from this are those between the ages of 23 and 60 who earn over 20,000 euros and are not currently enrolled in a pension system. They receive employer and state contributions that they previously missed out on.
2. Younger and mid-career workers
   Because contributions start early and increase over time, younger workers (in their 20s and 30s) benefit most from decades of consistent savings. For mid-career workers who have not yet saved, auto-enrollment provides a structured “catch-up path.”
3. Employers without existing pension systems
   If an employer does not currently offer a pension scheme, the auto-enrolment model offers them a standard, regulated option that fulfills a pension function for employees, albeit with cost implications (see below).
4. Economy and society
   Increasing private pension participation is expected to reduce reliance on government support later in life, improving the long-term sustainability of the pension system and the financial security of retirees.

Good (and challenging) news for employers

The positive:

• Although employers pay a contribution, the tiered structure means that the contributions are initially modest.
• A national standard system reduces the burden of setting up and managing many bespoke pension schemes (particularly for smaller employers).
• Contributions are tax deductible.

The challenges:

• Employers must decide: offer a qualifying occupational pension (to exempt employees from automatic enrollment) OR participate in the standard scheme.
• Many employers are unprepared: research shows that around 79% of Irish organizations are either “completely or partially unprepared” for automatic registration.
• Additional costs: Employer contributions increase over time, so long-term budgeting is required.
• Administrative and payroll systems need to be adjusted.

What employers should do now:

• Check the current pension arrangements: Do the current systems allow and exclude employees from auto-enrolment?
• Communicate with employees: explain how the system works, opt-out rights, etc.
• Prepare payroll and compliance systems: ensure cut-offs, eligibility checks and contribution collection.
• Budget for gradual contribution increases in the coming years.

Lessons from Europe: What works, what to watch

Auto-registration is not a new idea internationally. Countries such as the United Kingdom, Lithuania, Denmark and Poland have already implemented versions of it.

UK: Auto-enrolment introduced in 2012. Pension participation increased from ~40% to ~86%.
Key takeaway: Auto-enrollment increases coverage.
Warnings: Contribution rates for many employees remain low; Many people still save too little to achieve a comfortable retirement.

Lithuania, Poland, Denmark: Various compulsory or quasi-compulsory systems with a combination of employee, employer and government contributions.

What Ireland should see:

• Adequacy of contributions: Coverage alone is not enough – it is crucial to bring savings to a sensible level.
• Scheme design and selection: Employees who already have a good pension may be switched to a ‘standard’ product which may be inferior. Ireland’s dual structure (existing system vs. car) can lead to complexity.
• Communication and awareness: Employees (and employers) need to understand the system, their rights, costs and benefits. Research shows there are awareness gaps in Ireland.

The big picture: Why this could be transformative

The introduction of auto-enrolment in Ireland is more than a policy change – it could represent a generational shift in the way retirement is funded. For many employees who previously had no pension through work, standard registration combined with employer and government contributions provides a new basis for savings.

Over decades, this could dramatically increase coverage, reduce future reliance on the state pension and improve pension outcomes.

However, the success of the project will depend on three things:

• Sufficient contribution levels over time;
• Effective management and employer compliance;
• Intelligent communication to employees and employers so that the program is considered rather than ignored or rejected.

Final thoughts

If you are a worker in Ireland aged 23 to 60 earning more than €20,000 and not already receiving a pension from your employer, you will likely be automatically enrolled in My Future Fund from 1 January 2026, unless you already have an eligible scheme.
It’s time for employers to prepare – reviewing existing pension arrangements, adjusting systems, communicating with employees and taking changing contributions into account.

Auto-enrollment is not a panacea. It won’t immediately create a retirement pot for millionaires. But it changes the starting point: saving becomes automatic, employer and state contributions build up in parallel, and the inertia that often prevents retirement savings is broken.

For Ireland, this could be the moment when pensions are taken seriously for a broad swath of the workforce who previously had little or nothing. The question now is not whether the program will be introduced, but rather how well both employers and employees participate – and how effectively contributions are maintained, invested and communicated.

If all goes well, 2026 will mark the beginning of a new era in Irish pension provision.