Auto-enrolment is a fresh approach to help people save more for their golden years. Think of it as a savings jar where you, your employer, and even the government drop in some money.
● What is it? A retirement savings plan.
● How much do I pay? You start by setting aside 1.5% of your earnings. This will
gradually rise to 6% over a decade.
● Who can join? If you’re earning over €20,000 annually, are between 23 and 60, and
don’t already have a pension, you’re in! Others can opt-in if they wish.
● How do I keep track? You can at your savings online whenever you wish.
● Can I hit pause? Yes, but only after the first six months. If you do, you’ll be added
back in after two years.
● What’s my role? If your team members fit the criteria (like the age and wage criteria), you’ll need to enrol them.
● How much is my share? You match your employee’s contribution. If they put in 1.5% of their wage, you mirror that.
● What if I don’t do this? There could be fines or other consequences.
● Any gains for me? Tax benefits are available, and it might make your firm more
appealing to potential hires.
● How do we calculate this? Combine what you, your employer, and the government contribute. For instance, on a €20,000 salary at 1.5%, you’ll contribute €300. Your employer matches that, and the government adds €100. So, €700 is saved that year.
● When was the start? The Department of Social Protection rolled this out in 2023.
● Starting age? It kicks in from age 23 up to 60, given you meet other criteria.
● What exactly is the auto-enrolment pension? It’s your retirement nest egg, fed by contributions from you, your employer, and some money from the government.
Please note that MBC Financial will not be providing advice, information or setting up these pensions as these will be run from start to finish by the Government.