Wide public support for auto-enrolment, hopes for a better retirement
Back view of a senior lady with a trolley suitcase and a man with a boarding pass
There is strong support for the Government’s upcoming auto-enrolment (AE) scheme, due to be rolled out on January 1, 2026.
More than eight in ten (84%) Irish adults believe that it is fair to automatically sign workers up for the pension scheme, according to the findings of a new survey by Ask Acorn, a nationwide network of financial intermediaries.
Under AE, workers aged between 23 and 60 who earn more than €20,000 and are not already in an occupational pension scheme would automatically be enrolled in AE.
These workers will have the option to opt out after six months. However, the research suggests they are unlikely to do so, with almost nine in ten of those eligible for AE saying they are likely to remain in the pension scheme once enrolled.
While these findings show a strong appetite for AE and signal a positive shift toward broader pension coverage, Ask Acorn experts warn that this could lead some workers to a false sense of financial security.
“People who may have previously been putting off pension planning could see their auto-enrolment as a 'job done' moment, when in fact the scheme might not be the most suitable or sufficient option for their individual retirement needs,” said Keith Butler, CEO of Ask Acorn.
“The powers that be should be very encouraged by the feedback from this research. 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. That said, we must be mindful that auto-enrolment might lead some people, especially those who haven’t yet thought seriously about pensions, to believe they’re ‘covered’ without seeking proper advice.”
For some, this scheme will be a good fit – but for others, particularly those with different income levels, career paths or retirement goals, AE could fall short of delivering the retirement they are expecting.
“Workers should absolutely be proactive in taking some advice to determine whether AE is truly the right vehicle for their needs, or whether the roll-out is just the prompt they need to take action around their financial plans for the future.”
Mr Butler added that the statistics speak to a very obvious demand and need for the scheme. One third of Irish workers have no pension coverage outside the State pension. And more than half of the workers who don’t have a company pension scheme are in that position because their employer does not offer one.
“Of course, 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. It is perhaps understandable that the youngest age group appear most reluctant to join AE.
"Pensions are often not a priority for this age group as travel, studies, establishing a career or even paying the rent might be their more pressing concerns. However, if you are working, saving into a pension from a young age, even small amounts, has huge financial benefits. Given the concerns around the sustainability of the State pension, it is perhaps the youngest who stand to benefit most from AE.”
He concludes that the key message is that AE is a welcome move – but it is not a one-size-fits-all solution.
“Everyone eligible should be looking closely at what the scheme offers and considering independent advice. For some, AE may be the beginning and end of their pension journey. But for many, it should be the spark that prompts further, more personalised retirement planning.”
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