Fewer people than initially expected will be subject to Ireland’s new mandatory workplace pension, My Future Fund, it has emerged, amid of war of words between the Department of Social Protection and employer and pension groups.
The Government has consistently said that up to 800,000 people are likely to find themselves enrolled in the fund, which will deduct 1.5 per cent of their gross salary from their after-tax income from January – a figure that will rise to 6 per cent over the next decade.
However, papers released in the wake of Budget 2026 show the Government now expects the maximum number of workers likely to be affected has fallen by 50,000 to 750,000.
Auto-enrolment will see anyone aged between 23 and 60 and earning more than €20,000 across one or more jobs automatically signed up to the new State scheme if they are not already a member of a private pension scheme through their employer or otherwise.
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The practical deadline for workers and their employers is the November payroll, which for many large employers is based on details lodged by the middle of the month – around November 14th.
Anyone not providing evidence of payment into a pension by then will find themselves locked into the new scheme for at least six months.
The Department has accused some employers of “incorrectly informing staff that because of a change in legislation they are now obliged to join an employer sponsored pension scheme before the end of 2025″.
“Employers are reminded that it is an offence to take any action that hinders or attempts to hinder an employee from participating in the My Future Fund scheme,” the department said, adding that “any cases where employees are illegally obliged to join another pension scheme such that they are then prevented from accessing the My Future Fund scheme will be fully investigated.”
However, the Society of Actuaries, has warned the 100,000 or so workers who have yet to sign up to an occupational pension scheme that their employers offer to “look before they leap” into My Future Fund.
Acknowledging that the My Future Fund scheme will be a “game changer” for many workers with no pension coverage, it says that the 100,000 who have the option to join an existing employer scheme need to be aware that occupational pensions offer more flexibility in terms of early retirement options and the ability to make extra top-up contributions than My Future Fund.
“These are very important for individuals with missing years of service [especially women who are more likely to have taken time out for caring],” said Society of Actuaries spokeswoman Roz Briggs, adding that the new State scheme also does not offer life cover, a common feature of employer schemes.
“One common narrative is that, for lower rate taxpayers, My Future Fund is better than occupational arrangements because the Government incentives are better,” Ms Briggs said.
“However, employees need to be aware that in many existing workplace pension plans, their employers contribute more to the plan than they would under My Future Fund and in many cases this significantly outweighs the differences in State support.”
Joyce Brennan, the recently appointed chief executive of the Irish Association of Pension Funds, which speaks for the industry, urged workers to “explore their options”.
“Your employer’s pension plan could offer better value, more flexibility, and greater long-term benefits,” she said. “My Future Fund and your employer’s pension plan operate in fundamentally different ways. That’s why it’s worth taking the time to compare them. The right choice will depend on your income level, your tax rate, and the specific contribution rate and structure offered by your employer.
“Choosing the right pension plan can significantly impact your future savings and your take-home pay today,” she said.
The Government has pencilled in €154 million in Budget 2026 to cover its expected contributions to the auto-enrolment scheme next year. That means it expects €462 million to be deducted from workers’ pay to cover their contributions to the My Future Fund.
