Thursday, October 10 was a pivotal day in the move towards the launch of Auto Enrolment in 2025, with Minister Humphreys signing the commencement order. Auto Enrolment will be called “My Future Fund” and it is hoped it will help hundreds of thousands of hard-working people save for their futures, supplemented with contributions from their employers and the State.
A new authority, which will be known as the National Automatic Enrolment Retirement Savings Authority (NAERSA ), will be established on March 31, 2025 to oversee the implementation of the various arrangements and systems with first collection of contributions from employees, employers and the State beginning on September 30, 2025.
Currently it is estimated that 800,000 workers in Ireland have no pension funding in place. My Future Fund is designed to ensure these workers will have an occupational pension on top of the State pension when they reach retirement age.
Contributions will be set at 1.5 per cent of gross salary for employees, and employers and the State will fund €1 for every €3 contributed by employees. Employee and employer contributions will start at 1.5 per cent and will increase every three years by 1.5 per cent until six per cent is reached in 2034.
All employees between the ages of 23 and 60 who earn €20,000 or more, who are not currently contributing into a pension, will be automatically enrolled into the scheme.
It will be imperative for employers and employees to seek advice ahead of its launch in September 2025 to determine if My Future Fund or an alternative pension arrangement is the optimum choice for them, dependent on their own specific needs and circumstances.
For further information or advice contact Noreen McKenzie, Sherry FitzGerald Financial Services in Galway on (091 ) 569123.
