Thousands of workers to be automatically enrolled in pension scheme
Around 750,000 employees, aged between 23 and 60, will be automatically enrolled into a national retirement fund after the Government cabinet signed off on the pension plan.
The auto-enrolment pensions plan will see those who earn more than €20,000 automatically signed up to make contributions for their retirement fund.
The automatic enrolment scheme is a new savings and investment scheme for employees which will see the State and employers contribute towards employee pensions.
Approximately 750,000 employees who are aged between 23 and 60, earning over €20,000 across employments, and who are not already enrolled in an occupational pension scheme will be affected.
Matching contributions will be made by employers to those contributions made by employees up to a maximum of €80,000 of earnings.
For every €3 saved by a worker, a further €4 will be credited to their pension savings account, including a government top up.
The auto-enrolment was initially meant to start this year but due to the pandemic the roll out was delayed.
The scheme is now set to come into effect in January 2024.
The final infrastructure is expected to be in place in late 2023.
Minister for Social Protection Heather Humphreys said: "We all know that people are living longer. While this is very positive, we also want people to be able to enjoy their retirement years with some financial security.
"However, for many people retirement seems a long way away and they think they have a lot of time before they need to think about a pension," she said.
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