Ireland’s pension auto-enrolment is a turning point for women but it's not the whole story
For women in Ireland, whose pension incomes are, on average, far lower than men’s, the workplace pension auto-enrolment scheme could be a watershed moment.
On January 1, 2026, Ireland enters a new chapter in retirement savings with the launch of My Future Fund. This is the workplace pension auto-enrolment scheme with contributions from the employee, the employer and a State top-up.
For women in Ireland, whose pension incomes are, on average, far lower than men’s, this could be a watershed moment. But like all big reforms, the benefits will only be fully realised if the policy is matched by awareness, engagement and structural change.
Ireland is the last country in the OECD to introduce a broadly-based auto-enrolment pension scheme. Under My Future Fund, employees aged 23–60 earning over €20,000 and not already paying pension through payroll will be automatically enrolled. Contributions are taken from an employee’s gross pay and paid in by three parties.
From January 2026, the employee pays 1.5% of gross income and the employer matches this with 1.5%. Instead of tax relief on the employee payment, the State adds a 0.5% top-up.
The rates then increase in stages over the next 10 years, ending at 6% from the employee, 6% from the employer, and 2% from the State. That is 14% of an employee’s income paid into their pension each year.
For women, who are often disadvantaged by lower pay, caring roles and fragmented work histories, this is a real opportunity to narrow the gender pension gap.
There are a number of reasons why auto-enrolment is a move in the right direction for women:
- Forced inclusion rather than voluntary opt-in. Many women have little pension provision because starting can feel hard, confusing or unaffordable. With auto-enrolment, saving is the default, so fewer people miss out by doing nothing.
- Employer contributions kick in. With employer and State top-ups, the fund grows faster than if an employee was paying alone. In practice, these extra payments can act like added momentum.
- Cultural shift and awareness: The very fact that pensions are being discussed at national scale shifts the dial: when large numbers of women start seeing a monthly contribution on their payslip it brings it into everyday life. With everyone contributing, it normalises conversations about retirement savings.
- Long-term wealth building: Even modest, continuous contributions build up via compounding. Starting earlier means greater potential growth. This matters for everyone, but it can be especially meaningful for women who previously had little or no coverage.
That said, the gap isn’t closed yet. While the scheme is promising, it will not, on its own, eliminate the gender pension gap. Several caveats apply:
A report from National Women’s Council of Ireland (with research by TASC (think‑tank) found that while auto-enrolment will increase coverage, it will not significantly address structural inequalities in pension outcomes for women.
Women are disproportionately in part-time employment, lower paid jobs, more likely to take career breaks for caring. The scheme focuses on salaried employees earning over a threshold (approximately €20,000) which means many women remain outside or on the margins.
The structure of the scheme ties pension accumulation to earnings and employment history. These are areas where women often face disadvantages. If nothing else changes, the default design will still favour those in continuous full-time work, who are historically more likely to be men.
Awareness, engagement and financial capability also matter. Being enrolled is only step one. People will need to understand what the contributions mean, how investing works, and why staying in matters. Opting out, cashing out, or leaving pots behind can all reduce outcomes. There is no personalised pension advice built into auto-enrolment.
In other words: auto-enrolment is a major step, but the “finish line” is still distant.
What will make the difference for women? To turn this policy moment into real empowerment for women’s long-term wealth, three things must happen:
Being enrolled in My Future Fund is one thing. However, women (and men) need to understand what the contributions mean, how investment works, why staying in matters, how career breaks impact their pension and what strategies are available to grow their money (e.g. topping up when possible).
If the pension system still penalises someone who pauses work for care, works part-time or earns less, then the gap will remain. Meaningful progress will require combining pension policy with policy on childcare, flexible working, career return pathways. The TASC/NWC report emphasised this.
One of the hidden barriers for many women is simply that pension saving is seen as a technical, “male-oriented” topic. When employers, advisers and communities normalise simple conversations about retirement saving, the silence breaks. And that changes behaviour.
When women are financially secure, the effects spread far beyond individual households. It leads to less dependence on the state pension, reduced retirement poverty, greater later-life spending power and more intergenerational balance.
For women in Ireland, the auto-enrolment scheme is a big leap forward. However, it will only live up to its promise if the reforms are matched by awareness, structural supports and a cultural shift in how we talk about women, work and money.
- Jill Steeples and Kelly-Anne Quinn are the co-hosts of the podcast and practising financial planners with over four decades’ combined experience helping women take control of their financial futures.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
