Pension auto-enrolment: What is it and what will it cost?

After decades of discussion and debate, the prospect of workers being automatically added into a private pension scheme took a step closer this week.

Unless that changes, that would represent hundreds of thousands of workers who could be solely dependent on their State pension when they retire. Successive governments have sought to manage this by incentivising people starting pensions, either privately or through their job. The Government believes that the best way to reverse that trend is to make pensions payments the default for workers – rather than something they have to actively sign up to themselves.Will it impact everyone?The Government’s auto-enrolment plan will also cover only workers aged between 23 and 60.

Ultimately it’s estimated that close to 800,000 people will fall under the remit of the auto-enrolment scheme.The actual cost to you will depend on how much you earn, but it should be a relatively small amount at first. So, in reality, the same worker would see their weekly earnings fall by around €8 a week in the first year of auto-enrolment – not €13.

That effectively means that every euro a worker contributes will be matched by their employer – doubling the size of the pot.That means that the €675 contributed by an average-waged worker in year one will end up as €1,575, due to the matching €675 contribution from the employer and the further €225 from the State.

It is hoped the Bill will progress through the Oireachtas after Easter, with the Dáil set to resume on the 9th April.

Ireland Latest News, Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'No one event, no one thing' behind decision to step down, says VaradkarLeo Varadkar, speaking ahead of an EU summit in Brussels, has said that there was 'no one event' behind his decision to step down as Taoiseach.
Source: IrishTimes - 🏆 3. / 98 Read more »

'If it was my last one, it's not a bad one to go on'Ireland captain Peter O’Mahony lifted the Six Nations trophy in Dublin.
Source: The42_ie - 🏆 5. / 86 Read more »

One of Ireland's most popular recent hurdlers and multiple Grade One winner diesLimestone Lad won 35 of his 65 races during a six-year career that featured four Grade One victories
Source: IrishMirror - 🏆 4. / 98 Read more »

Luis Rubiales faces 30-month jail sentence for Hermoso kissFormer Spanish football chief charged with one count of sexual assault and one of coercion
Source: IrishTimesSport - 🏆 2. / 99 Read more »

Auto-enrolment scheme to see 800,000 Irish workers signed up to pensionsNew plans going to Cabinet for pension auto-enrolment will mean that for every €3 added to a pension by an employee, their pension pot will increase by €7 due to employee and State contributions
Source: IrishMirror - 🏆 4. / 98 Read more »

More women than men will rely on State pensionMore women than men will rely on the State pension when they retire, new research suggests.
Source: RTEbusiness - 🏆 16. / 61 Read more »