25% of Irish businesses have yet to take any action to prepare for the upcoming pension auto-enrolment scheme, according to a recent study.
The study, carried out by professional services firm Aon, assessed the readiness of a variety of different organisations in relation to the upcoming pension scheme.
Given the extensive preparations required ahead of the launch date, businesses around the country should be implementing a strategic roadmap now.
What is pension auto-enrolment?
The upcoming pension auto-enrolment scheme, My Future Fund, is a government initiative designed to automatically enrol eligible employees into a pension scheme.
The auto-enrolment system will apply to employees aged between 23 and 60, who earn over €20,000 per year and are not yet enrolled in any occupational private pension scheme. It’s estimated that as many as 800,000 workers will be enrolled once the scheme begins on 1 January 2026.
How are businesses feeling about pension auto-enrolment?
The study revealed valuable insights into the general preparedness of Irish businesses in relation to pension auto-enrolment. Below are some key takeaways:
- 1 in 4 businesses have not yet taken any action to prepare for the upcoming pension auto-enrolment scheme
- 85% of businesses in Ireland are concerned about the introduction of the scheme
- Only 7% of businesses surveyed have fully updated their documentation and internal systems.
- Only 4% have started communicating details of the scheme with their employees
- 59% of organisations have developed a strategic roadmap for the rollout of the pension scheme
- 62% of businesses are planning to enrol their employees in a pre-existing pension scheme, which will likely lessen the complications of running two different schemes side-by-side.
How should employers prepare for auto-enrolment?
Ahead of 1 January 2026, Irish employers will need to complete several key steps in preparation for pension auto-enrolment.
Here are our top tips for business owners:
- Clarify a strategic roadmap, with key goals and deadlines
- Assess your employee demographic
- Review and revise your HR documentation
- Update your internal systems
- Communicate with your employees