Pensions

Yesterday’s Chartered Accountants Ireland roundtable on pensions auto-enrolment marked the launch of the “Trusted Business Leadership: The Chartered Roundtables” series. With a panel of industry experts and strong member attendance, the event delivered lively discussion and practical insights on Ireland’s most significant pension reform in over a century. Members engaged deeply, raising questions on cost burdens for SMEs, tax anomalies between MyFutureFund and occupational schemes, and the readiness of payroll systems for the January rollout. The panel addressed operational challenges, compliance, and communication, highlighting the need for clarity and support as the sector prepares for change. The event reinforced the Institute’s commitment to advocating for members and ensuring their voices shape policy. As auto-enrolment approaches, Chartered Accountants Ireland will continue to advocate for and support members through change, championing trusted business leadership.   Chartered Accountants Ireland’s inaugural “Trusted Business Leadership: The Chartered Roundtables” event brought members together to discuss the imminent rollout of pensions auto-enrolment (AE)—the most significant reform since the State Pension’s introduction in 1908. Executive Head of Public Policy, Jill Farrelly, opened the session, emphasising the Institute’s commitment to advocating for members during this period of change.  The expert panel—Tony Culhane (Sage), Shane O'Farrell (Irish Life Employer Solutions), and Crona Clohisey (Chartered Accountants Ireland) - explored the expected benefits of AE, including increased retirement savings and streamlined administration. Members’ questions reflected real-world concerns: the cost and administrative burden for SMEs, readiness of payroll systems, and the adequacy of contribution rates. The panel acknowledged that while NAERSA aims to minimise employer workload, many businesses still feel under-informed and are seeking practical guidance ahead of the January launch.  Tax anomalies between MyFutureFund and occupational schemes, eligibility rules (such as the 13-week look-back and €20K income threshold), and the operational readiness of systems were debated. Practical challenges for employees transitioning into occupational pension schemes were highlighted, with concerns about the availability of resources and support to facilitate this change.  The panel stressed the importance of clear communication and robust support for both employers and employees, especially SMEs and seasonal workers. International comparisons with schemes in the UK, New Zealand, and Australia provided valuable lessons on opt-outs, compliance, and enforcement.  Several important points emerged during the discussion:  If a senior executive (or any employee) has a private pension but is no longer actively contributing because they have reached the Revenue maximum fund limit they will still be auto-enrolled in MyFutureFund if they meet the age and income criteria and are not making payroll contributions to a qualifying scheme at the time of assessment. The auto-enrolment system checks for current contributions, not just the existence of a pension fund or past participation.  Correction rules for auto-enrolment differ from standard payroll amendments with Revenue. Employers must ensure that pension contributions are made on each pay date, and any missed or incorrect contributions must be corrected promptly- typically by the next pay date.  AE is expected to drive a major shift of employees into private pension schemes, with employers needing to review existing arrangements and communicate options clearly. The cost burden for SMEs remains a significant concern, as labour costs are already high and AE will increase this further. The investment return of MyFutureFund will likely be closely watched in the initial 6-month period, but participants were reminded that by its nature, it is a long-term investment vehicle.  International comparisons showed that while the Irish system is less burdensome for employers than some overseas schemes, it is also less flexible than international peers.    The discussion highlighted the Institute’s ongoing advocacy, with members’ feedback feeding directly into policy engagement.   The Chartered Roundtables will continue, with the next event focusing on infrastructure and the National Development Plan.  You can view photos from the event here.

The implementation of the new Auto-Enrolment Retirement Savings Scheme is now only three months away. My Future Fund will affect 800,000 members of the workforce and every employer in Ireland, but our research has indicated that preparedness among businesses remains worrying low; only 2 in 5 (40%) respondents felt that they had been adequately informed of the steps needed to implement it in time for its January launch.    A new public body, the National Automatic Enrolment Retirement Savings Authority (NAERSA), will administer the auto-enrolment scheme, and we were pleased to note that the NAERSA Board, appointed earlier this month, includes two Chartered Accountants Ireland members.   Equipping businesses with the necessary information in the coming weeks is going to be crucial to making auto enrolment a success. Chartered Accountants Ireland will hold a free in-person lunchtime event on auto-enrolment on Thursday 16 October at Chartered Accountants House.   The first in our “Trusted Business Leadership: The Chartered Roundtables”, series, this event will feature perspectives from Shane O’Farrell, Director of Workplace Markets, Irish Life Employer Solutions, Tony Culhane, Solution Design Lead, Sage, and Cróna Clohisey, Director of Members and Advocacy, Chartered Accountants Ireland.   The Institute also believes that there is an ongoing need for government to bridge this information deficit and equip businesses with the support and guidance they need as we approach January.   

BlackRock’s 2025 Ireland Read on Retirement survey reveals Irish workers’ retirement anxieties. With auto-enrolment imminent, increased pension awareness is crucial, writes Tim Hodgson BlackRock’s 2025 Ireland Read on Retirement survey offers a revealing snapshot of the retirement landscape for Irish workers. The research exposes significant gaps between the recognized importance of pensions and the actual confidence workers have in achieving a comfortable retirement. Despite 81 percent of respondents acknowledging that pensions are the most effective means of securing a reasonable standard of living, just 41 percent feel they are on track to achieve this goal. The disconnect highlights the urgent need for enhanced financial planning and greater awareness of retirement savings. The survey identified a palpable sense of uncertainty among pre-retirees, aged 60–69, with more than a third uncertain whether their current trajectory will be sufficient to secure a comfortable retirement. This reality reflects broader anxieties within the workforce. It is evident that, while pensions are universally accepted as crucial, tangible readiness varies dramatically among workers, particularly between those with and without Defined Contribution (DC) workplace pensions. Workers lacking a DC pension express significantly less confidence in their retirement preparedness—just 26 percent of those without one feel on track, compared to 59 percent of their counterparts who enjoy the benefits of such schemes. Jumpstarting retirement savings As Ireland prepares for the introduction of the Auto-Enrolment Retirement Savings Scheme, called My Future Fund, the survey’s findings assume even greater significance. Scheduled to roll out in September 2025, this initiative aims to integrate as many as 800,000 Irish workers into an occupational pension scheme, jumpstarting retirement savings for many who have been without work or a private pension. The upcoming scheme is viewed as a watershed moment, a once-in-a-generation opportunity to redefine how retirement savings are approached. More than two-thirds of survey participants indicated a willingness to opt into the scheme during its inaugural year, reflecting optimism about the potential of auto-enrolment to reverse current trends. However, the survey also revealed that only half of workers believe that an employee contribution rate of 4.5 percent is affordable, highlighting significant challenges that remain in the broader context of financial readiness. Generational divide Generational differences further complicate the picture. The survey found that saving for retirement ranks among the top three financial priorities for Pre-Retirees and Gen Xers. In contrast, Millennials treat it as the least pressing concern, placing it last among six financial priorities. This divergence suggests that while older generations are grappling with the immediate need to shore up retirement funds, younger workers may be postponing or deprioritising savings amid other financial demands. Additionally, 43 percent of overall respondents admitted that they should be saving more, and 32 percent felt they had started too late. A similar proportion expressed concern that state pension provisions might fall short once they retire. The research highlights that nearly nine in ten pre-retirees and Gen Xers lack a clear strategy to manage their pension pots upon retirement. A striking majority believe that pension schemes should prioritise guidance to help savers manage the transition from accumulation to decumulation. In essence, while saving for retirement remains a top priority for many, there is an urgent need for enhanced financial education and personalised solutions designed to ease the transition from saving during working years to drawing down those funds in later life. Retirement unease Overall, the insights provided by the Ireland Read on Retirement survey reflect a broader international trend of retirement unease. With initiatives such as auto-enrolment on the horizon, it is imperative that policymakers, employers, and financial advisors work together to bridge the gaps in awareness and affordability. Only then can the promise of a secure and comfortable retirement become a reality for all Irish workers. Exploring these themes further reveals the critical importance of informed financial planning, and it invites renewed discussion on how best to support diverse generations in their unique retirement journeys. Tim Hodgson is Head of UK and Ireland Defined Contribution Platforms and Retirement Solutions at BlackRock