Pensions auto-enrolment

2022 - 3 - 29

New Workplace Pension Scheme for Ireland - Minister Humphreys ... (Gov.ie)

The Minister for Social Protection, Heather Humphreys, has today announced the details of the Final Design principles for the Automatic Enrolment Retirement ...

This is in addition to the €3 that will also be contributed by the employer “In this way, Auto Enrolment will significantly increase the wellbeing, financial security and independence of our future retirees. This means that for every €3 saved by the employee, a further €4 will be invested by the employer and the State combined. This recognises the value employers gain through their employees having additional security in retirement and assists employees with the cost of accumulating pension savings This means that although we will allocate contributions across different investment managers each person who chooses a particular fund type will receive the same return as every other person opting for the same fund-type. “In 2014, the OECD identified Auto Enrolment as a key pensions reform to be implemented. “The government listened and in 2018 we published a ‘strawman’ model for consultation. In addition, people with multiple employments will have their pension savings consolidated into one ‘pensions-pot’ The aim of Automatic Enrolment is to address this pension coverage gap. The State will also provide a top-up of €1 for every €3 saved by the worker. According to figures from the Central Statistics Office, the rate of supplementary pension coverage is around 56% of the working population. Ireland is the only OECD country that doesn’t yet operate an Auto Enrolment or similar system as a means of promoting pension savings.

Post cover — Image courtesy of "The Irish Times"

How much is the pension auto-enrolment scheme going to cost me? (The Irish Times)

The Government has announced plans for a new compulsory pension savings scheme for workers that do not currently have a private pension. They expect up to ...

What does the new auto-enrolment pension scheme mean for me? (Irish Examiner)

Social Protection Minister Heather Humphreys said the system would enable 750000 people currently without a pension to get one.

Between the State contributions and employer contributions, for every €3 saved by a worker, a further €4 will be credited to their pension savings account. This is in addition to the €3 that will also be contributed by the employer. In addition, people with multiple employments will have their pension savings consolidated into one ‘pension pot’. They will remain members of the auto-enrolment scheme on a ‘pot-follows-the-member’ basis. Three funds will have differing risk/return profiles. This recognises the value employers gain through their employees having additional security in retirement and assists employees with the cost of accumulating pension savings.

750000 workers set to be auto-enrolled in new pensions scheme by ... (thejournal.ie)

The automatic enrolment scheme is a new savings and investment scheme for employees which will see the State and employers contribute towards employee pensions.

We’re committed to the state pension,” Humphreys said. That process of putting aside a little each week to provide for the retirement years is something to be considered next year. There will be four different funds where people can place their savings, including one default medium risk fund. “For many people retirement seems a long way away and they think they have a lot of time before the need to think about a pension. It’s moving it towards one where a person has to consciously choose not to save for retirement,” Humphreys said. The State pension will remain in place and that it will be the “bedrock” of the new pension scheme, said Humphreys.

Auto enrolment pension scheme to give 'quality of life' after retirement (Newstalk)

Social Protection Minister, Heather Humphreys, has announced details of the automatic enrolment pension scheme for Ireland...

Ireland is the only OECD country that doesn’t yet operate an auto enrolment as a means of promoting pension savings. Social Protection Minister, Heather Humphreys, has announced details of the automatic enrolment pension scheme for Ireland.

Cabinet to consider pensions auto-enrolment plan (BreakingNews.ie)

The Cabinet are set to consider a new €2.8 billion auto-enrolment pension scheme which would see the State topping up private pensions.

The State will then contribute 0.5 per cent. However, they will be re-enrolled after two years. The Cabinet are set to consider a new €2.8 billion auto-enrolment pension scheme which would see the State topping up private pensions.

Pension auto-enrolment not being implanted due to increasing ... (BreakingNews.ie)

Darragh O'Brien said that the scheme is about providing pension coverage so that as best as possible people aren't just relying on the State on their ...

“Home ownership rates have plummeted in Ireland over the last twenty years. Employers will have to match employee contributions for up to six per cent of salaries below €80,000. To pay rent and to pay mortgages and to buy food and all of those normal things,” Mr O'Brien said. Less than 50 per cent of people who are working in the private sector have any type of pension at all. “ To pay rent and to live yes. This is a really significant move by Heather Humphreys.”

Auto enrolment pension scheme announced for private sector ... (Buzz.ie)

As part of the scheme, the state will top up private pensions; so for every €3 an employee saves for their pension, an additional €4 is added.

The new pension scheme is expected to be set up for employee enrolment by early next year. Under auto enrolment, employees will have access to a workplace pension savings scheme which is co-funded by both their employer and the state. The scheme means that everyone earning €20,000 or more will be automatically enrolled in pension contributions for their retirement.

Pensions auto-enrolment

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