Delays will continue to hinder rollout of auto-enrolment pension scheme, experts caution
The results of a survey of pension advisers comes after Public Expenditure Minister Jack Chambers said the long-awaited introduction of the auto-enrolment pension scheme would be postponed again.
The new mandatory pension was due to be put in place by September, but its rollout is not likely until at least next January.
A survey of pension advisers, undertaken by leading pension trustees Independent Trustee Company (ITC), found that three in 10 expected the rollout to be delayed again.
They expect it to be postponed by at least another two years.
Many of them are also calling on the Government to remove the limits on the amounts that can be saved into pensions through auto-enrolment.
This would give people a better chance of saving up an adequate pension through the scheme.
The survey of 130 pension advisers also found that 8pc expect it to be later than 2028 or 'never' by the time auto-enrolment is rolled out.
Almost two-thirds expect the rollout of the mandatory pension to be delayed into next year.
Under the scheme, workers would automatically be enrolled in a pension scheme, with contributions then made into the scheme by employers, the State and the employees.
There are limits on the amounts that can be saved into it.
Employees and employers are not permitted to save more than 1.5pc of an employee's annual salary into the scheme in the first three years .
This has prompted concerns around the adequacy of the retirement income workers would have if relying on auto-enrolment alone.
Asked whether they would support a removal of caps on the amount that employees and employers can contribute, more than four in 10 pension experts said the contribution limits should be removed.
Most of them said the limits should be the same as they are on private pensions.
Glenn Gaughran, head of business development with the Independent Trustee Company, said: 'It is imperative that private pension coverage in Ireland is improved – otherwise, a significant portion of the population could struggle financially when they reach retirement.'
He said one-third of workers currently had no pension coverage outside the state pension.
Mr Gaughran said that if the Government was serious about increasing private pension coverage, it could not afford any more delays with auto-enrolment.
The scheme, which will be named My Future Fund, will cover around 800,000 people who do not have a private pension, or one as part of their job, but its introduction has been repeatedly delayed.
Auto-enrolment has been 20 years in the making and was due to be put in place by September of this year.
It is being deferred until at least next January as part of government plans to support businesses amid the economic uncertainty caused by US tariffs.
The plan is aimed at workers between the ages of 23 and 60 earning more than €20,000 who are not currently part of a pension plan.
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