The Irish Government has announced that on 1st January 2024 all workers not already in an occupational scheme will be auto enrolled into retirement savings system in a bid to address Ireland’s significant retirement savings gap. The intention is that the employee’s contribution to the scheme will be topped up by contributions from the State and from the individual’s employer.
Setting up a group pension scheme now will put you ahead of the curve once auto-enrolment comes in. You can create the rules of the scheme to benefit your business rather than be forced down the auto enrolment route. There are several benefits to setting up your own scheme over auto enrolment:
Having a company pension scheme is not only a prudent provision to have in place for staff, it also has the following benefits:
It can be very challenging for small and medium-sized businesses to attract and retain talent; having a well-researched and comprehensive benefits package can really put you ahead of the competition. Offering a good pension with an active advisor is one such benefit. We can also advise and quote on other attractive benefits, such as death-in-service and income protection schemes. We can tailor a package based on the company’s affordability to keep the expense as competitive as possible.
Auto enrolment pension refers to a system in which employees are automatically enrolled in a pension plan unless they opt out. It is designed to increase participation in pension plans and to help individuals save for retirement. In Ireland, auto-enrolment pension will be invested in “default funds.”
The Irish government has introduced a number of measures to encourage more people to save for retirement, including the introduction of the auto-enrolment pension system. If you have any further questions about auto enrolment pension in Ireland, feel free to ask.
40% of Irish workers will rely on the State Pension as their only form of income in retirement
Only 60% of the entire Irish workforce has a pension (occupational pension, personal pension or both)
Only 30% of self-employed people contribute to a pension
Women will have 38% less to live off in retirement when compared to men