The Government has confirmed that the start date for the pension auto-enrolment scheme, My Future Fund, has been postponed until 1 January 2026.
The scheme was initially scheduled to begin in January 2025, before being rescheduled to 30 September 2025. It has now been pushed out by a further three months.
While the delay provides employers with additional preparation time, it is crucial to prepare for these upcoming changes in advance, and to ensure that your employee contracts and policies are compliant.
What is My Future Fund?
My Future Fund is a State-backed retirement savings initiative designed to automatically enroll eligible employees into a pension scheme.
The auto-enrolment pension system will apply to employees aged between 23 and 60, who earn over €20,000 per year and are not yet enrolled in any occupational private pension scheme. It’s estimated that as many as 800,000 workers will be automatically enrolled in the scheme once it does kick off.
Employer and employee contributions will increase on a gradual basis over a number of years.
My Future Fund is managed by the National Automatic Enrolment Retirement Savings Authority (NAERSA).
Why has the start date for pension auto-enrolment been moved again?
The Minister for Social Protection, Dara Calleary, announced that the scheme was being moved to allow businesses to align any payroll changes they may have to make with the new tax year. The delay will also allow more time for employers to update their payroll systems and ensure compliance.
Taoiseach Micheál Martin also stated that the scheme was being delayed due to a logistical issue, and that more time was needed to prepare for the rollout.
How can I prepare for pension auto-enrolment?
Some key tips for employers are:
- Policy assessment: Assess your current pension policies (if any) to determine the impact that the My Future Find scheme will have on you and your employees.
- Payroll: Ensure that payroll systems are fully up to date and can handle the new contribution calculations and reporting requirements.
- Budgeting: It’s important to plan ahead and budget for the financial impact of the scheme.
- Communication: If relevant, communicate with your employees with regards to the scheme and its impact on their remuneration.
Proactive planning will facilitate a smooth transition when the scheme does become operational.
