Auto Enrolment Kildare, Ireland
Auto Enrolment – My Future Fund
Auto-enrolment is a new retirement savings system for employees that will be 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 | 2025 € |
| Single or widowed or surviving civil partner, qualifying for Single Person Child Carer Credit | €48,000 @ 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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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)