I propose to take Questions Nos. 694 and 695 together.
The Programme for Government contains a commitment to introduce the Automatic Enrolment (AE) Retirement Savings System. The aim of introducing AE is to address the pension coverage gap that exists in Ireland and to provide workers with access to a quality assured retirement savings scheme, thereby giving greater comfort and security regarding their retirement income. The new system - known as My Future Fund - commenced on the 1 January 2026.
Over 763,000 employees that weren't actively contributing to a qualifying pension or PRSA through payroll were eligible and were automatically enrolled in My Future Fund. Once a person is enrolled in the scheme, they remain enrolled until they are eligible to draw down their funds when they reach State Pension age. However, participants may not be actively contributing at all times because they may have opted-out or suspended contributions or joined an exempt occupational or private pension arrangement or are not in the workforce.
The administration fees associated with My Future Fund have been set out in regulation following consultation with the Chief Executive Officer of the National Automatic Enrolment Retirement Savings Authority (NAERSA) and the Minister for Public Expenditure, Infrastructure, Public Services Reform and Digitalisation. The fee was calculated on the basis of a detailed financial model based on likely participation levels in My Future Fund and the operating costs of NAERSA. Therefore, provision has already been made for the possibility of non-contributing participants remaining in the scheme.
The administration fee is a flat weekly fee of 55 cents per week rather than a 'commission' based on a percentage of funds under management. In this way the administration fee reflects the actual costs of administration (which do not vary with fund size), is the same for all contributing participants regardless of their income or the size of their retirement fund, and will, ultimately, prove much better value for money for the participant over the course of a standard retirement planning horizon.
The My Future Fund accounts of those who become non-contributing participants will continue to be administered and invested. This will apply to any participant who decides to leave Ireland before they are eligible to withdraw their funds. There are no plans to allow retirement savings funds to be drawn down early as early access to savings undermines the fundamental principle that savings should be ‘locked away’ or deferred until retirement. The only exception in terms of early access to My Future Fund savings will be in relation to enforced workplace retirement due to ill health, injury, or disability.
I hope this clarifies matters for the Deputy.
