Auto-Enrolment in 2026
2026 and Auto-Enrolment and HR Managers
After years of talk and delays, the start date for auto-enrolment has finally been confirmed. The new scheme, called My Future Fund, will launch on 1 January 2026.
This is a government-led pension initiative aimed at increasing retirement savings across the workforce. If you are in HR, here’s what you need to do.
Employers will be required to enrol eligible staff into a pension scheme by default. For HR managers, this means preparing the workforce for a significant change. It also means supporting employees to understand how contributions will affect their take-home pay and their long-term financial future. If you are managing HR or payroll in a business that does not yet offer a pension scheme, here is what you need to know.
Employees will be auto-enrolled if they:
- Are aged between 23 and 60.
- Earn more than €20,000 per year (across all jobs combined).
- Are not already paying into a pension through payroll.
Once enrolled, contributions will begin in January 2026. Employees can opt out after six months, but they will be re-enrolled every two years if still eligible.
What happens over time
Contributions will increase gradually as follows:
- Year 1 to 3: 1.5% from both employee and employer
- Year 4 to 6: 3% each
- Year 7 to 9: 4.5% each
- Year 10 onwards: 6% each
The State top-up will remain in place throughout.
If an employee does not wish to be in the pension scheme, they can opt out after 6 months and their contributions are refunded to them, however the employer’s contributions and the State contributions are not refunded. Anyone who opts out must be re-enrolled again after 2 years and re-start the whole process (paying in, opting out after 6 months if they don’t want to be in it etc).
Challenges for HR Managers
HR teams will be the first point of contact when AE questions arise. The scheme will not provide tailored advice or employer-specific guidance.
This means HR managers must be ready to answer:
- Why is money being deducted?
- How are the investments chosen?
- What happens if employees opt out?
- How does AE compare to the existing pension scheme?
Clear communication will be essential to prevent confusion or concern.
Practical steps for HR include:
- Information sessions: Explain AE in plain, simple language
- Clear resources: Help employees understand the scheme and their options
- Regular reminders: Keep staff updated as contribution rates change
Some employers are choosing to bring in regulated financial advisors to run workshops or offer one-to-one support. This can reduce pressure on HR teams while increasing employee confidence.
Review Your Pension Scheme
Take stock of what already exists:
- Do you offer a pension scheme?
- Who is enrolled and who is not?
- What are the contribution rates?
This review will help you understand who will be auto-enrolled and whether your current scheme needs updating.
Talk to Management
Use this time to align HR and leadership on:
- The cost of matching contributions.
- Whether to enhance or replace an existing pension scheme.
- How to divide responsibilities between payroll, HR and finance.
Management will expect clarity around timelines and financial impact.
Get Outside Help
A financial advisor can help your organisation:
- Prepare AE communications.
- Deliver staff workshops.
- Provide one-to-one sessions where appropriate.
- Focus on financial wellbeing overall.
At Lynx Financial Services, we work with HR teams to make pensions more accessible and less stressful.
Check Payroll Systems
AE depends on accurate salary data. Make sure:
- Your payroll software is updated.
- Employee data is accurate.
- Eligibility by age and salary is tracked correctly.
Ask your payroll provider about their AE readiness and reporting options.
Upskill Your HR Team
Ensure your team is ready to:
- Answer staff questions confidently.
- Run AE information sessions.
- Explain options without giving financial advice.
Consider running internal workshops or seeking support from a regulated advisor.
Internal Communications
Plans should include:
- Draft FAQs.
- Visual explainers or internal videos.
- A communication timeline.
📌 Many employees will want to know how AE compares to PRSI or private pensions. Partnering with a financial advisor can help provide clear answers.
What now?
AE is a legal requirement, but how you approach it is up to you. You can meet the minimum standard, or you can use this as an opportunity to enhance your employee benefits. Whichever route you choose, the time to prepare is now.
AE is giving many businesses the option to complete and stand out from their competitors with regards to staff pensions. Many are choosing to take control by setting up their own pension schemes, thus exempting them and their staff from the AE scheme.
We can help them to set up a company pension and then provide employees with the engagement and support as mentioned above. We work with all of the pension providers in Ireland, which means we can get you the best scheme for your business and your employees.
Lynx Engagement and Support Services
We’re here to support your team and help ease the administrative burden for your organisation. Every company we work with will have different needs. This can include:
- Run in person or online talks to inform and engage your employees about what AE is and the benefits of it…. before the money starts to disappear from their payslips in January!
- Help them to understand the process and their option to opt out, if they really do not want to participate.
- Explain to your employees in plain, simple terms, the investment side of pensions and the investment choices that they will be asked to make by AE or whatever pension option you provide.
- Provide 1-1 sessions for those looking for more support around their investment choice.
With the government’s new My Future Fund auto-enrolment scheme on the way, there has never been a better time to take control of your financial plan.
Because good advice is never one-size-fits-all. It is built around you.
Who We Work With
We support:
- Business owners who want to offer more than salary.
- HR teams preparing for auto-enrolment.
- Employers rolling out pension schemes for the first time.
- Managers who want practical help for staff struggling with money.
Whether you’re a small business or a larger team, we’ll help you find the right approach.
Why work with Lynx Financial Services?
We’ve been advising people on financial matters for decades. We’re regulated by the Central Bank of Ireland and proud members of Brokers Ireland.
You won’t find a hard sell or complicated jargon. We’re here to help people make better decisions about money, one step at a time.
Next Steps
Financial wellbeing doesn’t need to be flashy. It just needs to be honest, relevant and shared. When it’s done right, it makes a lasting difference. If you want to offer something that’s genuinely useful to your team, financial wellbeing is a good place to start.
Helping You Plan for Today, Tomorrow and the Unexpected
At Lynx Financial Services, we keep things simple. No complicated jargon. Just clear, practical guidance to help you plan your pension, manage your investments and protect your future. You have worked hard to build your future. Now it is time to make the most of it.
With the government’s new My Future Fund auto-enrolment scheme on the way, there has never been a better time to take control of your financial plan.
Because good advice is never one-size-fits-all. It is built around you.
Your financial security is our priority and as a member of Brokers Ireland regulated by the Central Bank of Ireland you can trust that you’re in safe hands. Wherever you are in life, whatever your financial ambitions – we’re here to help.
📩 Get in touch for a no-pressure chat about what might work for your business.