Busted: 6 Ireland auto-enrolment pension myths 

Ireland’s auto-enrolment pension scheme – My Future Fund – is finally coming down the track, at full steam. As things currently stand, the scheme takes effect at the end of September. All employees aged over 23 and earning more than €20,000 a year are set to be automatically enrolled. Let’s tackle some of the key myths and misconceptions and offer useful advice on how employers can ready themselves.  

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Ireland auto-enrolment pension myths, busted

Conclusion and key takeaways

Legislation has already paved the way for one of the biggest reforms to the Irish pension system ever. A new body now exists to administer the scheme in the form of the National Automatic Enrolment Retirement Savings Authority (NAERSA).   

As the launch day for pension auto-enrolment approaches, Zellis gauged the preparedness of companies by surveying 356 payroll, HR, finance, and IT professionals in Ireland. The research, an update on our 2023 report, paints a picture of the current landscape while offering practical tips to Irish payroll and HR teams on how to prepare for the new auto-enrolment rules. This guide can help dispel the misconceptions circling about the scheme. 

Ireland auto-enrolment pension myths, busted 

Myth: “We’ve been hearing about pension auto-enrolment for a good while now, but there’s no definite date or major panic to prepare for it. Plus, I can’t imagine there’s too much involved in implementing it.”  

Fact: There’s now an official commencement date of 30^th September 2025, yet 40% of respondents have very little to no understanding of the timeline and planning needed to support auto-enrolment. Only 17% say they fully understand the timeline and planning requirements. Just 33% of organisations have updated their employment contracts in line with the impending changes, storing up a headache for HR further down the line. 

Myth: “Our company already has a pension plan, so the new auto-enrolment rules don’t affect us.” 

Fact: Unless your company has contractually mandated membership of its pension scheme for all employees, it will be impacted by the auto-enrolment process.  

Myth: “We believe many – perhaps most – employees will opt out of the scheme.” 

Fact: 75% of employers now expect to see a majority of their workforce taking part in the scheme. Nearly 40% believe that 8 or more in every 10 workers will remain opted in after the initial period of automatic enrolment ends.  

Myth: “Pension auto-enrolment is an administrative matter, not something for the business to overly concern itself with.”   

Fact: Companies who don’t prepare on time will risk non-compliance, penalties, and operational disruptions. Not to mention unexpected financial burdens and last-minute expenditure if they don’t take the right steps. 

Myth: “We don’t need to worry about the cost of running the auto-enrolment scheme until closer to the time.”  

Fact: 78% of organisations have either not calculated, or only partly calculated, the cost of auto-enrolment. Without an initial baseline analysis, employers will not understand their existing exposure, reducing the accuracy of any projected costs.  

Myth: “We believe that our current payroll system will be able to handle pension auto-enrolment. We don’t need to invest in modernising our technology.”

Fact: 58% of employers indicated their company has still to check whether its payroll system can make the necessary calculations, deductions, and contributions to CPA Ireland. But those who have looked into it are aware of changes that need to be made. 48% of organisations expect to invest in payroll system modernisation. 

“Having spoken to lots of industry professionals, we worry about employers and employees being caught off guard with pension auto-enrolment. We conducted this research to help spread awareness of what needs to happen between now and September to smoothen the transition to the new system. We hope this report provides some helpful insights while busting any myths that may be circulating. Our managed services division stands ready to handle the entire auto-enrolment process for companies.” 

Seán Murray, Director of Product Services, Zellis Ireland

Conclusion: Get ready for the auto-enrolment pension 

The launch of My Future Fund is now just a matter of months away. It’s time to understand what auto-enrolment entails for Irish payroll and practical preparation steps to take as an employer. Act now to avoid costly and time-consuming business disruption or penalties.    

Key takeaways

• The National Automatic Enrolment Retirement Savings Scheme is one of the biggest-ever reforms of the Irish pension system. Known as My Future Fund, it will start in September under the administration of NAERSA. 
• The new pension auto-enrolment rules mandate that all employees aged over 23 and earning more than €20,000 a year will enrol automatically.  
• To avoid misconceptions, employers and employees should educate themselves about the new scheme and take practical steps to prepare for it.  
• We’ve produced a detailed research report to help guide companies through a successful transition to auto-enrolment. 

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Tackle the transition and stay on track 

Find out exactly what you need to do for a smooth rollout in How to get ready for pension auto-enrolment in Ireland, the essential guide.