Ireland’s auto-enrolment retirement savings programme MyFutureFund has exceeded participation expectations in its first year of operation, according to figures from the National Automatic Enrolment Retirement Savings Authority (NAERSA).
The scheme, which launched on 1 January, has enrolled more than 835,000 workers and collected over €500 million in contributions, marking a significant expansion of pension coverage across the Irish workforce.
Key facts
- MyFutureFund has attracted 835,000 participants since its January 2026 launch
- Only 29,000 workers (under 4 per cent) opted out during the first withdrawal window between July and August
- The scheme has collected over €500 million in contributions and investments on behalf of participants
- Pension ownership in Ireland has risen 17 per cent since 2025, according to Competition and Consumer Protection Commission research published in September
- More than 10,500 workers have voluntarily opted into the programme
Lower Than Expected Opt-Out Rates Signal Employee Confidence
The first opt-out window for MyFutureFund ran between 1 July and 31 August, during which 29,000 eligible participants submitted requests to withdraw from the scheme. This represents an opt-out rate of less than 4 per cent, substantially below industry estimates that had ranged from 10 to 16 per cent.
Niall Fitzgerald, head of retirement solutions at Zurich Ireland, described the low opt-out rate as particularly encouraging. “The seamless launch, with deductions and investments proceeding without issues, has helped build confidence in the system,” Fitzgerald said.
Olive Reid, head of account management for corporate pensions at New Ireland, noted that the low withdrawal rate against a challenging cost of living backdrop indicates strong employee support for long-term saving. She added that the requirement for employees to remain enrolled for six months gave both workers and employers time to adjust to deductions and allowed members to see their pension funds begin to accumulate.
Research from the Competition and Consumer Protection Commission, released in September, revealed that pension ownership has risen 17 per cent since 2025. The introduction of MyFutureFund has been identified as a key factor driving this increase in coverage across the finance sector.
Challenges Ahead as Contribution Rates Prepare to Increase
Maintaining the low opt-out rate achieved so far will become more challenging when contribution rates increase in January 2029 and every three years thereafter, according to Fitzgerald. He emphasised that NAERSA must clearly communicate the benefits of retirement saving to existing contributors well in advance of these increases to encourage members to remain within the system.
The scheme offers a straightforward state top-up structure: for every €3 an employee contributes, the state adds €1. However, this simplicity means MyFutureFund does not offer some benefits available through occupational pension schemes or Personal Retirement Savings Accounts (PRSAs).
Higher-rate tax relief is often more generous than the state top-up, Fitzgerald explained. There is also greater flexibility in occupational schemes and PRSAs, including the ability to make additional employee contributions or Additional Voluntary Contributions, which is not currently possible within MyFutureFund.
Glenn Gaughran, head of business development at Independent Trustee Company, advised employers deciding between a master trust and a PRSA to assess which pension scheme offers the best value and is most appropriate for their employees. He recommended seeking impartial advice to understand how the schemes differ and compare on costs, emphasising that factors such as retirement timing, investment preferences and member interests should guide the decision on which pension product suits a company and its employees best.
Fitzgerald noted that the introduction of auto-enrolment in Ireland has increased awareness, particularly among younger workers, of the need to take personal responsibility for saving adequately to maintain a good standard of living in retirement. In many cases, MyFutureFund has prompted employees to join their own occupational pension scheme or open a PRSA earlier than they might otherwise have done.
Reporting based on original coverage by Business Plus.