Automatic Enrolment Retirement Savings System

On 29th of March 2022 Minister Humphreys announced details of Automatic Enrolment Retirement Savings System.

Are you curious as to what this means?

Simply put

Phased Implementation

  • The system will be phased in, All employees not already in an occupational pension scheme, aged between 23 and 60 and earning over €20,000 across all of their employments, will be automatically enrolled.
  • The system is due to be set up by 2023 with the first employee enrolments taking place in 2024.
  • Both employer and employee contributions will start at 1.5%, and increasing every three years by 1.5% until they eventually reach 6% by over 10 years (by 2034).


  • Matching contributions will be made by employers to those contributions made by employees up to a maximum of €80,000 of earnings.
  • The State will also top up contributions by €1 for every €3 saved by the employee, up to a maximum of €80,000 of earnings.


  • Eligible employees will be automatically enrolled/ ‘opted-in’ but will have the choice after six months participation to opt-out or suspend participation.
  • Employees will have a range of four retirement savings funds to choose from.
  • Three funds will have differing risk/return profiles. In addition, a default fund based on what is known as a ‘life-style’/’life-cycle’ investment profile will be provided.
  • People who do not express a preference for any fund will be enrolled into the default fund.


  • A Central Processing Authority (CPA) will be established to administer the system.
  • People moving between jobs will not have to change pension scheme or join a new scheme. They will remain members of the Auto Enrolment scheme on a ‘pot-follows’ the member’ basis. In addition, people with multiple employments will have their pension savings consolidated into one ‘pensions-pot’.
  • Services will be provided and supported through an easy-to-use online channel where participants will see their savings pots grow quickly and substantively.