Auto-Enrolment in 2026
2026 and Auto-Enrolment
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 an employer or employee, here is what you need to know.
What you need to know
Who will be enrolled?
Employers must enrol any employee who:
- Is aged between 23 and 60
- Earns more than €20,000 per year (from all employments)
- Is not already contributing to a pension through payroll
If someone meets all three criteria, they must be automatically enrolled in the scheme. Once enrolled, the following contributions will apply:
- Employee: 1.5% of gross salary
- Employer: 1.5% of gross salary
- State: A top-up of €1 for every €3 contributed by the employee
This means for every €3 you, the employee pays in, the government adds €1 – effectively boosting your pension by 33%.
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.)
Employer Responsibilities
- Identify eligible employees.
- Enrol them automatically into AE unless they opt out (after 6 months).
- Deduct and remit contributions through payroll.
- Match employee contributions (within prescribed limits).
The Pros
- Employees are making provision for retirement.
- Employer contributing to the pension.
- The State contributes to the pension.
- Low cost (minimal fees and charges).
- Financial Wellbeing will be more topical than ever.
- 25% Top Up is larger than 20% tax relief in a company pension when earning < €44k.
The Cons
- No engagement: There’s no one to explain the benefits.
- No Advice: Employees will have to make investment choices, with no support.
- Low Contributions: For those late to starting a pension they will be paying too little.
- It doesn’t add up: 25% Top Up is lower than 40% tax relief in a company pension when earning > €44k.
- Access: There is no early access to the pension funds.
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.