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Auto-enrolment countdown: what employers and employees need to know about MyFutureFund
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Ireland’s new pension system, MyFutureFund, is coming soon. Laura Reidy, Director of Wealth Management at Cantor Fitzgerald Ireland shares what you need to know ahead of its start date.
As we rush toward the New Year and tackle our festive to-do lists, there is another looming deadline that will matter long after the decorations are packed away. Ireland’s new pension system, MyFutureFund, is due to go live on January 1, 2026.
This major reform is expected to bring approximately 800,000 workers into pension saving for the first time. With the clock ticking, both employers and employees have practical decisions to make. This guide explains what the scheme is, why it is being introduced, how it works, and what you need to do, whether you are running a business, working for one, or both.
What is Auto-enrolment and why now?
Auto-enrolment, delivered through MyFutureFund, will become Ireland’s mandatory retirement savings scheme for employees who are not currently contributing to a workplace pension.
For decades, many Irish workers have reached retirement relying almost entirely on the State pension. Auto-enrolment aims to change that by automatically enrolling eligible workers and ensuring contributions from employees, employers and the State. The goal is simple: to help people build meaningful retirement savings without needing to opt in or navigate pensions alone.
Who is eligible for Auto-enrolment?
Eligibility is a key part of understanding MyFutureFund, and it affects both employers and employees.
An employee will be automatically enrolled if they:
- Are aged between 23 and 60
- Earn €20,000 or more per year, across all employments combined
- Are not already contributing to an existing workplace pension through payroll
Key points to note:
- Employees under 23 or over 60 can voluntarily opt in.
- Workers earning under €20,000 are not automatically enrolled but can choose to participate.
- Existing pension members, such as PRSA or occupational scheme members, are exempt.
- People with multiple jobs have their total annual income combined to determine eligibility.
- Part-time employees are assessed in the same way, as eligibility is based on total annual earnings.
For employers, accurate payroll data and records of existing pension participation are essential. Employees should check whether they meet the threshold or consider opting in voluntarily to start saving early.
Even for those already saving through private pensions, auto-enrolment is a timely reminder to review contributions and investment strategy to ensure retirement plans remain optimised.
How will the scheme work in practice?
Participation looks like this for employees:
- You will have a MyFutureFund account, a personal long-term savings account that belongs to you. You, your employer and the State will all contribute to it.
- Contributions are deducted automatically from your pay each period.
- Your employer matches your contribution, and the State contributes one-third of your contribution.
- Your money is invested in the scheme’s default investment strategy. You also have the option of switching into a Low, Medium or High Risk strategy.
- Contributions stop when you reach State Pension Age, currently 66, at which point you can draw down your savings.
- You can opt out, but only during the opt-out window, which is months seven and eight after your first six months of contributions.
- If you start contributing to another qualifying pension through payroll, MyFutureFund contributions for that employment will stop.
Contribution Rates
| Period | Employee | Employer | State |
| January 2026 to December 2028 | 1.5% | 1.5% | 0.5% |
| January 2029 to December 2031 | 3% | 3% | 1% |
| January 2032 to December 2034 | 4.5% | 4.5% | 1.5% |
| January 2035 onwards | 6% | 6% | 2% |
These phased increases ease employees and employers gradually into the system.
What steps will SME owners need to take?
Small and medium-sized businesses should prepare and:
- Check your payroll data
Ensure employee earnings, ages and employment status are accurate, as NAERSA uses payroll information to determine eligibility. - Register on the NAERSA portal
Registration is open and straightforward. Employers will receive notifications and submit contributions through the portal. - Identify existing pension members
Employees already contributing to a pension through payroll before Auto-enrolment begins are exempt. - Update payroll systems
Ensure payroll software can calculate Auto-enrolment contributions, deduct them correctly and process refunds if someone opts out. - Communicate clearly
Employees will have questions. Providing clear and simple explanations early helps avoid confusion.
What do employees need to do?
Auto-enrolment handles most of the work automatically, but employees should:
- Review payslips once deductions begin
- Understand opt-out or suspension options
- Consider how the scheme fits with existing pension arrangements
- Ask their employer questions if anything is unclear
Can you opt out or suspend contributions?
Opting out
- You must complete six months of contributions first.
- You can opt out during months seven and eight.
- Your contributions are refunded, but employer and State contributions remain in your pension pot.
- You may be automatically re-enrolled every two years if the eligibility criteria are still met.
Suspending contributions
- Temporary suspensions, such as during maternity leave, may be possible, but rules vary. Consult your employer or financial adviser.
Part-time workers and multiple jobs
Eligibility is based on total annual earnings across all employment. If two part-time jobs together exceed €20,000 per year, you may be automatically enrolled even if neither job alone meets the threshold.
Where to go for more help
Reliable resources include:
- Citizens Information for impartial guidance
- Gov.ie Auto-enrolment hub for official details
- NAERSA portal for registration, contributions and account management, once live
- Financial advisers or HR professionals for tailored guidance
What this all means for you
This is a fundamental shift in retirement saving in Ireland.
For employees, especially those without a pension, MyFutureFund offers a way to build long-term security with contributions from you, your employer and the State.
For employers, early preparation ensures smooth payroll transitions, clearer staff communication and regulatory compliance.
Auto-enrolment: a new step in workplace pensions
While positive for many employees, Auto-enrolment does not automatically cover company directors or self-employed individuals in PRSI Class S.
Even for those already saving through private pensions, Auto-enrolment is a timely reminder to review contributions and investment strategy to ensure retirement plans remain optimised. For others, it expands pension coverage across the population, helping more people take their first steps towards financial security.
At Cantor Fitzgerald Ireland, our wealth planning team can help you:
- Coordinate multiple retirement contracts for effective investment growth and financial planning
- Make informed decisions on contributions, drawdowns and estate planning to optimise your retirement strategy
Take the first step this New Year and make 2026 the year your retirement plan truly begins.
Cantor Fitzgerald Ireland is a global wealth partner dedicated to creating impact. To find out more, visit cantorfitzgerald.ie.
This is a Marketing Communication. WARNING: This information is based on our understanding of current pensions and tax law which is subject to change without notice. Cantor Fitzgerald are not tax advisors nor does this marketing communication constitute tax advice. Cantor Fitzgerald Ireland Ltd is regulated by the Central Bank of Ireland.
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