What is Pension Auto-Enrolment? 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 Does Auto-Enrolment Mean for Me as an Employee?
- 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 Does Auto-Enrolment Mean for Me as an Employer?
- 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.
Other Questions Answered:
- 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.
Need More Insight? MBC Financial is here to guide you. Whether you’re an individual looking to understand your savings or a business aiming to navigate the auto-enrolment waters, our team can provide the expertise you need.
Got more questions? Reach out to MBC Financial for tailored guidance.