Latest news with #MyFutureFund
Irish Independent
3 days ago
- Business
- Irish Independent
What no-one is telling you about the Government's new mandatory auto-enrolment pension scheme
Even if you're among the third of private sector workers who don't have any retirement savings and would rather get root canal treatment than think about getting a pension, it's been hard to avoid a new government advertising campaign on radio, TV or social media about My Future Fund.
RTÉ News
22-07-2025
- Business
- RTÉ News
1-in-4 businesses yet to take action to prepare for pension auto-enrolment
One-in-four businesses in Ireland have yet to take any action to prepare for the introduction of pension auto-enrolment ahead of its launch on 1 January 2026, according to a new survey. The research from professional services firm Aon found that only 7% of organisations have fully updated their internal systems and legal documents ahead of the launch, while just 4% have reached the stage of communicating to employees around the implementation of auto-enrolment. In May this year, Aon conducted an analysis of 202 client occupational pension schemes to assess organisational preparedness for auto-enrolment and the steps being taken in response. The pension auto-enrolment scheme is called "My Future Fund" and is designed to help over 800,000 workers to begin saving for their retirement. All employees not already in an occupational pension scheme, aged between 23 and 60 and earning over €20,000 across all of their employments, will be automatically enrolled in the new scheme. The research from Aon shows that 85% of organisations in Ireland have concerns about the introduction of pension auto-enrolment, with the additional costs the main worry for more than half of respondents. According to the study, 59% of surveyed organisations have developed a strategic roadmap for pension auto-enrolment, while 62% are planning to enrol applicable employees in an existing pension scheme. This can help to avoid the complexity of running both an occupational scheme and the auto-enrolment scheme in parallel. "It's clear from our analysis that organisations in Ireland are largely making positive progress on their auto-enrolment journey and look set to reap the rewards in the coming months," said Caroline Rowan, Head of Retirement Consulting at Aon Ireland. "However, it is concerning to see a sizable minority of businesses yet to take any action to prepare for the scheme," she said. "Given the major transformation required across payroll, people and processes, these businesses will need to urgently accelerate their preparations over the coming months," Ms Rowan said.
Irish Times
22-07-2025
- Business
- Irish Times
Start of mandatory pension scheme fast approaching, but one in four companies yet to prepare for it
One in four businesses have yet to take any action to prepare for the introduction of the new mandatory workplace pension scheme, which is due to come into force at the start of next year. Over half of the businesses surveyed by global professional services firm Aon cite cost as their main concern around the introduction of auto-enrolment , which will see around 800,000 workers between the ages of 23 and 60 who are earning more than €20,000 automatically signed up to a pension called My Future Fund. The Aon survey looked only at their existing pension clients – companies that already operate occupational pension schemes. The picture is expected to be worse among smaller businesses that do not have any pension scheme up and running already. Companies with occupational schemes are required to put arrangements in place to cover any workers who have either opted out of the existing workplace scheme or are not signed up to a company scheme for a period after starting employment – generally around six months. READ MORE Vesting periods on occupational schemes – where workers who leave within two years get their own pension contributions back – also present issues with auto-enrolment. Aon's study found that the majority of its 202 clients intend to enrol everyone into their existing pension schemes to 'enhance efficiency and avoid the complexity of running both an occupational scheme and the auto-enrolment scheme in parallel'. [ Opens in new window ] However, as people cannot be forced to join a company scheme, this will require an extensive education and communication campaign. The group found that almost six in 10 businesses have developed a strategic roadmap for auto-enrolment. However, it says more work remains ahead to make sure businesses are fully prepared for the looming changes for payroll, staff and processes. 'Only 7 per cent of organisations have fully updated internal systems and legal documents ahead of the launch, while just 4 per cent of businesses have reached the stage of communicating to employees around the implementation of auto-enrolment,' Aon said. David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 Companies remain concerned about elements of the incoming auto-enrolment system, with 85 per cent of respondents raising various issues. Chief among those was the additional cost burden likely to fall on companies to manage auto-enrolment (52 per cent), with 48 per cent worried about the complexity of running their existing occupational pension scheme in parallel to auto-enrolment. 'The introduction of pension auto-enrolment provides a once in a generation opportunity to create a more equitable pensions system in Ireland,' said Caroline Rowan, head of retirement consulting at Aon Ireland. 'With the launch of the new system now only a matter of months away, it's crucial that organisations across the country ready themselves for the landmark scheme and fully harness the opportunity ahead to secure a dignified retirement for their people. 'Auto-enrolment is a landmark moment in pension reform that will pave the way for a more equitable pensions system in Ireland. 'While more than half of men receive a private pension, fewer than one in three women receive the same benefit. By bringing more than 800,000 new savers firmly into the pensions safety net, auto-enrolment can help to close the gender pensions gap in Ireland and create a fairer system fit for the future. Ms Rowan said that while the survey showed a majority of businesses were making progress in preparing for the new regime, 'it is concerning to see a sizeable minority of businesses yet to take any action to prepare for the scheme'. She added: 'Given the big transformation required across payroll, people and processes, these businesses will need to urgently accelerate their preparations over the coming months.'
Irish Examiner
16-07-2025
- Business
- Irish Examiner
Employers who 'behave badly' over pension scheme will be 'chased down'
Employers who try to force or dissuade their workers out of the newly-planned auto-enrolment pension scheme could face 'sanctions, penalties, and prosecutions', an Oireachtas committee has heard. Officials from the Department of Social Protection addressed TDs and senators on the scheme which is due to start from January 1, and said employers who 'behave badly' and try to reclassify workers to avoid paying pension contributions would be 'chased down'. Assistant secretary at the department, Tim Duggan, said: 'There are also provisions within the auto-enrolment act to discourage employers from behaving in a way that would coerce or seek to persuade employees from not engaging in auto-enrolment.' In the works for nearly a decade, auto-enrolment pensions will see all employees not already in an occupational pension scheme or similar arrangement, between the ages of 23 and 60 and earning €20,000, automatically enrolled in one. Similar schemes operate in Britain, Australia, and New Zealand. Those who are auto-enrolled can opt out if they so wish, and can opt for higher or lower-risk retirement savings strategies within the scheme. The scheme, dubbed 'My Future Fund', will be phased in over a decade. In the first three years, both employers and employees will contribute 1.5%, before it rises in increments to 6% by year 10. At the same time, the State will top up each person's savings pot by €1 for every €3 they contribute. Mr Duggan said the rising incremental contributions will make it easier for employers to absorb the cost of contributing to the scheme, which comes at a time when many businesses are facing pressure on their costs from a variety of factors. 'We've had extensive engagement with all of these [business groups] over the last couple of years,' Mr Duggan said. 'Explaining the system, outlining the implications for them, and hearing those concerns that this is an additional cost. 'I've acknowledged it is an additional cost, but equally, over time, the cost impact of it will dissipate considerably. Over the next 10 years, wage inflation is going to be massively in excess of 6%. 'I've never seen a 10-year period where it hasn't been, so this is just an element of that wage inflation that's going to occur.' On lessons learned from other jurisdictions, the committee heard that many countries made the amount people would pay into these pensions too low. This is why the Irish scheme would gradually increase the contributions. Mr Duggan said: 'Ask any of the designers or operators of these schemes, they'll tell you it's the biggest mistake they made. They've a big problem with it now in the UK, 13 years in. 'In Australia, they took the view at the beginning they had to invest in low-risk conservative funds. The consequence of which is people didn't make any money in their pension pots.' In terms of the planned January start date, Mr Duggan acknowledged that payroll providers and employers had said it would be 'more helpful' than the now delayed September 2025 start date. He added that a communications campaign to make workers aware they may see a reduction taken from their payslips from January if they have been auto-enrolled will be ramped up in the coming months. Read More Auto-enrolment heralds a new era for pensions in Ireland
Irish Independent
15-07-2025
- Business
- Irish Independent
Revealed: Vast majority of public supports long-delayed new mandatory pension scheme
The new auto-enrolment pension, called My Future Fund, is due to begin from January after more than two decades of promises to launch such a scheme. Now a survey has found that over eight in 10 Irish adults believe it is fair to automatically sign workers up for the new pension scheme. The findings came in a survey of 1,000 adults nationwide by Ask Acorn, a national network of financial intermediaries. Under auto-enrolment, workers aged between 23 and 60 who earn more than €20,000 and are not already in an occupational pension scheme would automatically be enrolled in the new pension plan. These workers will have the option to opt out after six months. However, the research suggests they are unlikely to do so. Almost nine in 10 of those eligible for auto-enrolment say they are likely to remain in the pension scheme once enrolled. Financial experts said the findings showed a strong appetite for the scheme and signalled a positive shift towards broader pension coverage. But Ask Acorn experts warned that this could lead some workers to a false sense of financial security. Ask Acorn CEO Keith Butler said: 'People who may have previously been putting off pension planning could see their auto-enrolment as a 'job done' moment, when in fact the scheme might not be the most suitable or sufficient option for their individual retirement needs.' Last week, Social Protection Minister Dara Calleary launched a national awareness campaign for My Future Fund. Mr Butler said the Government should be encouraged by the feedback from the research. ADVERTISEMENT 'Even more important than the fact that so many support the fairness of the auto-enrolment itself is the fact that so many of those eligible plan to remain in the scheme,' he said. 'If nothing else, these results should be viewed by those with responsibility for the rollout as a compelling reason to ensure there are no further delays.' The rollout of the scheme has been subjected to repeated delays over the last two decades. Mr Butler said My Future Fund would be a good fit for many, especially those who have not yet thought seriously about pensions. 'But for others, particularly those with different income levels, career paths or retirement goals, auto-enrolment could fall short of delivering the retirement they're expecting. 'Workers should absolutely be proactive in taking some advice to determine whether auto-enrolment is truly the right vehicle for their needs, or whether the rollout is just the prompt they need to take action around their financial plans for the future.' The survey, conducted by iReach, found that four in 10 Irish adults believe it is 'very fair' that workers would be automatically enrolled to the pension scheme. A further four in 10 described it as 'somewhat fair'. One in six feel the compulsory enrolment of workers to the scheme is either 'somewhat' or 'very' unfair. The youngest age cohort surveyed are the most likely to feel it is 'very unfair' to automatically sign workers up to the scheme. Mr Butler said the findings indicated there was an obvious demand and need for the scheme. One-third of Irish workers have no pension coverage outside the state pension.
