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.