From 1 January 2026, Ireland's new auto-enrolment retirement savings system goes live. It's called MyFutureFund, and it will automatically enrol hundreds of thousands of workers who don't currently have a workplace pension. If you're an employer, this means new payroll obligations, new costs, and new responsibilities. If you're an employee without a pension, it means money will start coming out of your pay, with matching contributions from your employer and the State.
This guide explains who's affected, how the contributions work, what employers need to prepare, and what happens if you already have a pension arrangement in place.
What Is Auto-Enrolment in Ireland and Why Is It Being Introduced?
Auto-enrolment is a new mandatory-entry pension system designed to close Ireland's retirement savings gap. Currently, a significant proportion of private sector workers in Ireland have no pension beyond the State pension. MyFutureFund changes that by automatically enrolling eligible workers into a retirement savings scheme, with contributions deducted through payroll.
The system is administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA). The core idea is simple: make saving for retirement the default rather than something people have to actively seek out. Workers who are enrolled will build up a pension fund over their career through combined contributions from themselves, their employer, and the government.
The launch date is 1 January 2026. Employers need to be ready before that date.
Who Will Be Automatically Enrolled in MyFutureFund?
The eligibility criteria are straightforward:
- Age: Between 23 and 60 years old.
- Income: Earning over €20,000 per year.
- Pension status: Not already in a qualifying pension arrangement (workplace or private pension that meets minimum standards).
If you meet all three criteria, you'll be automatically enrolled. You don't need to apply or opt in. It happens through your employer's payroll system.
Who's not included:
- Workers under 23 or over 60.
- Anyone earning €20,000 or less per year.
- Workers already in a pension scheme that meets the qualifying standards.
Edge cases worth noting: part-time workers whose combined income from multiple jobs exceeds €20,000 may be eligible. Employees who cross the threshold mid-year (through a pay rise or turning 23) may become eligible at that point. The scheme rules will clarify how these transitions are handled in practice.
How Will MyFutureFund Work in Practice?
The process runs through payroll. Once an employee is assessed as eligible, their employer enrols them into the scheme. Auto-enrolment contributions are then deducted from each pay cycle and remitted to the central retirement savings system along with the employer's matching contribution.
Each party has a role:
- Employee: A percentage of gross pay is deducted each pay period. You receive statements and can monitor your pension fund through your MyFutureFund account.
- Employer: The employer must facilitate enrolment, process payroll deductions, make employer contributions, and communicate with employees about the scheme. This is a legal obligation, not optional.
- State: The government adds a top-up contribution. For every €3 the employee saves, the State adds €1.
Over time, contributions accumulate and are invested. The fund grows through both contributions and investment returns, building a retirement pot that supplements the State pension.
How Much Will I Pay, and How Do Employer and State Contributions Work?
The contribution structure is the most distinctive feature of MyFutureFund. It's designed so that every €3 you contribute is matched: your employer puts in an amount, and the State adds €1 on top.
The contribution rate starts at 1.5% of gross earnings for employees and employers in the early years, phasing up over time. By year 10, the rate is expected to reach 6% each. The State contribution phases in alongside.
Here's how the phasing works at a high level:
|
Phase |
Employee |
Employer |
State Top-Up |
|
Years 1-3 |
1.5% |
1.5% |
0.5% |
|
Years 4-6 |
3% |
3% |
1% |
|
Years 7-9 |
4.5% |
4.5% |
1.5% |
|
Year 10+ |
6% |
6% |
2% |
For an employee earning €40,000, the initial cost in year one is €600 per year (1.5%), with the employer contributing another €600 and the State adding €200. By year 10, the employee contributes €2,400, the employer €2,400, and the State €800, for a total annual pension contribution of €5,600.
For employers, this is a new cost that needs to be budgeted. On top of the direct contribution, there's the payroll administration overhead: processing deductions, managing enrolments, handling opt-outs, and communicating with staff.
Can You Opt Out of MyFutureFund?
Yes, but not immediately. Auto-enrolment means you're enrolled by default. There will be an opt-out window after enrolment during which you can choose to leave the scheme. The exact timing and process will be set out in the scheme rules published by NAERSA.
Key points on opting out:
- You cannot opt out before being enrolled. The system is designed to enrol first, then allow an exit if you choose.
- What happens to contributions already made during the initial period (refunded or retained) depends on the scheme rules. This is one of the details to watch as the launch approaches.
- If you opt out, you may be automatically re-enrolled after a set period. This is common in auto-enrolment systems internationally and encourages people to reconsider.
You can also pause contributions under certain circumstances, though pausing means your employer and the State stop contributing too. The financial incentive to stay in is significant: opting out means giving up free money from your employer and the government.
Workers who aren't automatically enrolled (because they're under the age or income threshold) can opt in voluntarily if they want access to the scheme and the matching contributions.
What If You Already Have a Pension?
If you're already paying into a pension plan that meets the qualifying standards, you won't be auto-enrolled into MyFutureFund. Your existing pension arrangement, whether it's a company pension, an occupational pension scheme, or a personal pension, may satisfy the requirements.
The concept of a "qualifying scheme" is important here. Not every private pension will automatically exempt you from auto-enrolment. The scheme must meet minimum standards around contribution levels and coverage. Employers with existing pension schemes should check whether their current arrangement qualifies, or whether they'll need to make adjustments.
If you're enrolled in MyFutureFund but later start paying into a private pension that meets the criteria, you may have options to transfer or consolidate. The details of how this works in practice will be confirmed closer to launch.
Is MyFutureFund "better" than a personal pension? They serve different purposes. MyFutureFund offers simplicity and guaranteed employer and State contributions. A personal pension offers more flexibility in investment choices, contribution levels, and access to additional voluntary contributions. For a tailored comparison, regulated financial advice is the right step.
What Do Employers Need to Do to Prepare?
This is where the practical burden falls. Employers must be ready to enrol eligible employees from 1 January 2026. That means:
- Assess your workforce: Identify which employees meet the eligibility criteria (age, income, no existing qualifying pension). This needs to be an ongoing process, not a one-off exercise, as employees may become eligible over time.
- Update payroll systems: Your payroll software needs to handle auto-enrolment deductions, employer contributions, and remittance to the scheme. Check with your payroll provider about MyFutureFund readiness.
- Budget for employer contributions: Starting at 1.5% of gross pay per eligible employee, rising to 6% by year 10. Factor this into your financial planning now.
- Communicate with staff: Employees will have questions. Prepare clear communications explaining what's happening, how much will be deducted, and what their options are.
- Review existing pension schemes: If you already offer a company pension, check whether it qualifies as an exempting scheme. If it does, you may not need to enrol those employees into MyFutureFund.
The administrative overhead shouldn't be underestimated, particularly for small businesses without dedicated HR or payroll teams. Working with your accountant to plan the implementation well before January 2026 avoids a scramble.
What Happens If You Change Jobs?
Your MyFutureFund account is designed to follow you between employers. When you move to a new job, your new employer picks up the contribution obligations. Your existing pension fund continues to grow. This portability is one of the scheme's advantages over traditional occupational pension arrangements, which can be fragmented across multiple employers.
For foreign employees working in Ireland, eligibility depends on meeting the same age and income criteria. Workers on short-term assignments may have social security coordination considerations (such as A1 Certificates) that affect whether Irish auto-enrolment applies or whether their home country's pension system takes precedence.
Frequently Asked Questions About Auto-Enrolment in Ireland
When does auto-enrolment start in Ireland?
MyFutureFund launches on 1 January 2026. Employers need to be ready to enrol eligible employees and process payroll deductions from that date.
How much will auto-enrolment cost employers?
Employer contributions start at 1.5% of gross earnings per eligible employee in years 1-3, rising to 6% from year 10. For a business with five eligible employees earning an average of €35,000, the initial annual cost is approximately €2,625, rising to €10,500 at the full rate.
Can employees refuse to join MyFutureFund?
Employees are enrolled automatically and can opt out during a designated window after enrolment. They cannot refuse enrolment upfront. Those who opt out may be re-enrolled periodically, giving them another opportunity to stay in.
Does auto-enrolment replace the State pension?
No. MyFutureFund is a supplementary retirement savings system. It sits alongside the State pension (contributory), which continues as before. Auto-enrolment is designed to provide additional retirement income on top of the State pension.
Where can I find the official details on MyFutureFund?
The official scheme information is available at myfuturefund.ie and through Citizens Information. NAERSA publishes updates as the scheme rules are finalised.
Need Help Preparing Your Business for Auto-Enrolment?
January 2026 is coming fast. If you haven't assessed your workforce, reviewed your payroll systems, or budgeted for employer contributions, now is the time. We help Irish businesses prepare for MyFutureFund: workforce assessment, payroll setup, cost modelling, and employee communications. No last-minute scramble.
Get in touch today to start your auto-enrolment preparation. We'll review your current pension arrangements, identify eligible employees, and build a plan that's ready well before the deadline.
Disclaimer: This guide is for general information purposes only and does not constitute tax advice. Tax rules and thresholds can change. Always consult a qualified accountant or tax adviser for advice specific to your circumstances.