Auto Enrolment Kildare, Ireland
Auto Enrolment – My Future Fund
Auto-enrolment is a new retirement savings system for employees was introduced on 1 January 2026.
The goal of auto-enrolment is simple: to give every worker the opportunity to save for a brighter future, supplementing the basic state pension. Here’s what you need to know:
- Who’s eligible?
Employees aged 23–60, earning more than €20,000 per year, and not already contributing to a supplementary pension, will be automatically enrolled in the new AE scheme.
- What’s required of Employers?
Employers will need to facilitate enrolment and contribute to staff pensions if the employee is not already contributing to a pension.
- How does it work?
Contributions will start at 1.5% of gross income from both the employee and employer, increasing every three years by 1.5% until both are contributing 6%. The State will also top up each pension, with employer and State contributions capped at €80,000 of earnings.
Pros
- Employer contributions will receive corporation tax relief.
- The state will also contribute to your fund.
- For anyone on the marginal tax bracket of 40% they may be better off in a personal pension.
How much can I earn before I pay 40% tax in Ireland?
Tax rates, bands and relief
| Personal circumstances | 2026 € |
| Single or widowed or surviving civil partner, qualifying for Single Person Child Carer Credit | €44,000 @ 20% Balance @ 40% |
| Married or in a civil partnership ( one spouse or civil partner with income) | €53,000 @ 20% Balance @ 40% |
Cons
- There is no tax relief on personal contributions – the State contribution will replace the tax relief.
- No AVC’s (additional voluntary contributions) can be made to the Auto Enrolment scheme – however it looks like members will be eligible to contribute to a Non – Standard PRSA
- The retirement age for the Auto Enrolment is the date of payment of the state pension (currently age 66) – There is no early access to the fund – unless under ill health.
- No choice on fund options
- No Fund Advice
Sample
Salary 20,000
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Salary 40,000
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Frequently Asked Questions on Auto Enrolment
Do I have to be included in Auto enrolment?
Yes Employees aged 23–60, earning more than €20,000 per year will automatically be added in.
Employees already making regular contributions to an occupational pension scheme, or an equivalent scheme, will not be automatically enrolled.
Note if you are self employed you will be excluded from auto enrolment and must make your own private pension arrangements.
What if I want to make my own fund choices?
Then I would advise that you set up your own pension or if your company has a Pension scheme then join this.
What happens if I leave the company?
Then your fund will become paid up and you will not be able to access this until retirement age (currently 66)
When did auto enrolment start in Ireland?
Auto enrolment, branded .My Future Fund’, very catchy,, went live on 1 January 2026. It is run by the National Automatic Enrolment Retirement Savings Authority and overseen by the Pensions Authority. Eligible employees are enrolled automatically through employer payroll and over 760,000 workers were enrolled in the opening weeks. If you are an employee aged 23 to 60 earning more than €20,000 and you are not already paying into a pension through payroll, you are very likely already in the scheme.
How much do I and my employer pay into My Future Fund?
Contributions are shared between you, your employer and the State. They rise in steps over ten years. They begin at 1.5% of gross pay each from you and your employer, with the State adding a further amount. They increase every three years until you and your employer each contribute 6%. The State top up works out at roughly one euro for every three you pay in. Contributions apply to gross earnings up to €80,000 a year.
Can I opt out of auto enrolment once I am enrolled?
You cannot opt out immediately. You must stay in the scheme for the first six months, after which you can choose to opt out or suspend your contributions. If you opt out your own contributions are refunded to you, but the employer and State contributions already made stay invested in the fund. If you remain eligible you will be automatically enrolled again after two years, so opting out is a pause rather than a permanent exit. The government is trying to ensure that everyone has a pension of some sort. Ideally they want people investing 10% or more of their annual salary.
Is auto enrolment better for me than a PRSA or a company pension?
It depends on your tax position. Employee contributions to My Future Fund do not receive the normal income tax relief. Instead the State tops up your contribution, which works out similar to relief at the standard rate. A PRSA or occupational pension gives relief at your marginal rate, so for a 40% taxpayer a personal or company pension can be more tax efficient. Auto enrolment also has limited fund choice. Access is linked to State Pension age. Advice helps you compare the two properly.
Does auto enrolment apply if I am self employed?
No, it does not. Auto enrolment applies to employees who are paid through payroll. If you are self employed you are excluded from the scheme and need to make your own private pension arrangements, such as a personal pension or a PRSA. This matters because a great many self employed people have no pension in place at all. It can get put on the back burner in the early years. Putting even a modest regular contribution in place while claiming tax relief is usually far better than relying on the State Pension alone.
People Also Ask
What is a PRSA and how is it different from auto enrolment?
A PRSA is a personal pension that gives marginal rate tax relief and a wide fund choice, which auto enrolment does not. See our PRSA page.
Can my company set up its own pension instead of using auto enrolment?
A qualifying workplace scheme can exempt staff from auto enrolment and often gives better options. Read more on our corporate pensions page. It is more straight forward thanit might seem.
How do I review a pension I already hold?
If you have an older or paid up pension it is worth checking the fund and charges. We explain how on our reviewing your pension page. Or talk to us about it whenever you want to do so.
What are my choices when I retire?
Auto enrolment savings sit alongside any other pension and the State Pension when you plan your retirement income. See our retirement planning page.
Can I start my own personal pension as well?
You can top up your retirement savings with a personal pension that gives full tax relief. Find out more on our personal pension page.