The Department of Employment Affairs and Social Protection has recently announced key elements of a new system of pension auto-enrolment, set to be implemented on a phased basis from 2022. Under the new system:

• Workers aged between 23–60 earning more than €20,000 a year will be automatically enrolled in a pension scheme, if not already in one with their workplace;
• Contributions will start from 1.5% of salary, rising to 6% of salary in their tenth year of employment, giving workers more time to accommodate the increase;
• There will be opportunities to opt-out and take breaks from contributions, with contributions in the first six months being mandatory; and
• Employers will be required to match contributions, with the Government’s contributions yet to be announced.

Key elements of the new system are in line with the Institute’s November 2018 response to the Strawman Public Consultation on the process for an automatic enrolment retirement savings system for Ireland; mainly that automatic enrolment should supplement the State pension and also complement the existing supplementary pension system.

A further consultation process will take place following the finalisation of the remaining elements of the design.