My Future Fund: Ireland's New Auto Enrolment Pension Explained

Ireland has named its proposed Auto Enrolment pension scheme "My Future Fund". 

Is it just a name change, or are there important updates employers need to know? 

Let’s find out what this means for your business.

What Is My Future Fund and How Does it Work?

My Future Fund is Ireland's new Auto Enrolment retirement savings scheme, set to launch on 30th of September, 2025.  

It aims to improve pension coverage for 750,000 private sector workers in Ireland who currently lack retirement savings beyond the State Pension, strengthening Ireland's overall pension system.

The scheme will automatically enrol eligible employees in a pension plan, with contributions from the employee, employer, and the Irish government. 

Why Did the Irish Government Name Auto Enrolment “My Future Fund”? 

According to Heather Humphreys, the Minister for Social Protection, the new name, "My Future Fund," is meant to make people feel more connected to their pension. It encourages them to take a more active role in saving for retirement.

It’s just a rebranding of the scheme that was previously known as “Auto Enrolment”.

The rules about who can join and how the scheme works are unchanged. 

Let’s quickly go over that next. 

Who Is Eligible for the My Future Fund Program?

To be automatically enrolled in My Future Fund, an Irish employee must:

• Be between 23 and 60 years old

• Earn a combined income of €20,000 or more per year

Part-time and seasonal workers who meet the age and income requirements will also be enrolled.

Exemptions:

An employee will not be auto enrolled if they are already a member of: 

• An occupational pension scheme  

• A Retirement Annuity Contract (RAC) or Personal Retirement Savings Account (PRSA)

To qualify for this exemption, their contributions must be processed through payroll.

The National Automatic Enrolment Retirement Savings Authority (NAERSA) is the administrative body that will oversee  My Future Fund in Ireland. They will identify employees eligible for Auto Enrolment, so employers won’t need to assess whether their workers meet the required criteria.

What Are the Contribution Rates for My Future Fund?

Under My Future Fund, contributions are based on a percentage of an employee’s gross salary, up to a maximum of €80,000 per year. 

Contribution rates are introduced gradually through a phasing-in period, which begins with My Future Fund’s launch in 2025 and ends in 2035 when the maximum rate of 6% applies.

Here’s a breakdown of employee, employer, and government contribution rates:

A. Employee and Employer Contributions

Employee contribution rates will increase gradually in phases:

• In the first 3 years, employees will contribute 1.5% of their gross pay.

• From years 4-6, this will rise to 3%.

• In years 7-9, employees will contribute 4.5%.

• From year 10 onwards, their contribution will reach 6%.

As an employer, you will be required to match employee contributions. For example, if an employee contributes 1.5%, you will also contribute 1.5%.

B. State Contributions

The State will support these contributions by adding a top-up amount. 

This begins at 0.5% in year 1 and will gradually increase. By year 10, the State top-up will reach 2%.  

Auto Enrolment employee & employer contribution rates over time:

For example:

Let's say an employee’s combined income is €40,000 per year. In year 1 of My Future Fund:

• The employee would contribute €600 (1.5% of their salary).

• You, as their employer, would contribute another €600.

• The State would add an additional €200.

This means that in the first year, €1,400 would be added to the employee’s retirement savings.

How Does This Compare With Occupational Pension Schemes?

Unlike My Future Fund, occupational pensions offer greater flexibility. 

You can tailor contributions to suit your business and your employees’ financial goals. 

Here’s how occupational pension contributions work in Ireland:

• You’re only required to contribute at least 1% of your employee’s salary into their pension pot. 

• Employees are not required to contribute but can choose to do so voluntarily, often at a rate set by your occupational scheme or based on their individual preferences.

Want to set up an Irish occupational pension scheme? Kota can help.

Kota: Your Trusted Partner For Occupational Pensions in Ireland

Kota is a digital pensions platform that lets you easily set up a compliant workplace pension in minutes — all without any administrative burden or complex paperwork.

We partner with Irish Life to offer their EMPOWER Personal Lifestyle Strategy (Empower PLS) solution in Ireland, which has two key benefits:

• It protects the pension fund value against market fluctuations

• It adjusts the investment strategy based on an employee’s unique circumstances  

So why wait?

Join Kota to empower your team with flexible, competitive pensions. 

3 FAQs Related to My Future Fund

Here are some common questions on Ireland’s new Auto Enrolment scheme:

1. Can An Employee Opt Out of My Future Fund?

Employees can’t opt out for the first six months. After that, they have a two-month window (months 7-8) to do so.

If they opt out, they'll automatically be re-enrolled 2 years later.

Employers can't opt out of the scheme. It's a legal requirement, with fines and potential prosecution for non-compliance.

2. How Will the Contributions Be Invested Under My Future Fund?

NAERSA will oversee investment management, with major Irish pension providers likely managing the funds. 

Most people will start in a default fund that invests in higher-risk options when they're younger, then gradually shift to safer investments as they near retirement. Employees can choose their own funds too.  

3. Where Can I Find More Information About My Future Fund?

Stakeholders can refer to our comprehensive Auto Enrolment guide. 

You can also contact the Department of Social Protection at [email protected] with any questions about My Future Fund or Auto Enrolment.