Most workers eligible for auto-enrolment predicted to stay in scheme

From January, workers aged 23 to 60 not already in an occupational pension scheme will be enrolled automatically

Almost nine in 10 (87%) people eligible for pension auto-enrolment (AE) say they will stay in the scheme when it begins, new research suggests. Photo: iStock

Almost nine in 10 (87%) people eligible for pension auto-enrolment (AE) say they will stay in the scheme when it begins, new research suggests.

A survey of more than 1,000 adults found strong support for the upcoming scheme, with more than eight in ten (84%) Irish adults believing it is fair to automatically sign workers up for the pension scheme. Some 87% of those surveyed who will be eligible for AE saying they are likely to remain in the pension scheme once enrolled.

Under AE, workers aged between 23 and 60 who earn more than €20,000 and are not already in an occupational pension scheme will automatically be enrolled in AE. These workers will have the option to opt out after six months.

On the other side of the spectrum, one in six respondents (16%) felt the compulsory enrolment of workers to the scheme is either “somewhat” or “very” unfair. The youngest age cohort surveyed (18–24-year-olds) are the most likely to feel it is “very unfair” to automatically sign workers up to AE, with 10% of this age group expressing this opinion, compared to only 2% of 25–34-year-olds, 3% of those aged 55+, and 4% of 35–44 and 45–54-year-olds.

Women are slightly more likely than men to consider it fair that workers be automatically enrolled in AE (86% versus 82%).

The research was carried out on behalf of financial intermediary firm Ask Acorn. "Even more important than the fact that so many support the fairness of the auto-enrolment itself is the fact that so many of those eligible plan to remain in the scheme. If nothing else, these results should be viewed by those with responsibility for the rollout as a compelling reason to ensure there are no further delays," said Ask Acorn chief executive Keith Butler. 

One third of Irish workers have no pension coverage outside the State pension, and more than half (53%) of the workers who don’t have a company pension scheme are in that position because their employer does not offer one. 

“The statistics speak to a very obvious demand and need for the scheme," said Mr Butler. 

"There will be some people who are not happy with the scheme and who want to engage. But the numbers are relatively small. If nothing else, the rollout of the scheme might prompt people to take action themselves by setting up their own private pension."

Mr Butler noted that AE was originally planned to begin in January 2024. "It is important the Government rolls out AE soon and that it does it right. Auto-enrolment has real potential to address the country’s pension coverage gap. However, it is important that the AE start date, which was recently pushed back from September30, 2025 to January 1, 2026, is not delayed again."