2026-06-18

8. Deputy Shay Brennan asked the Minister for Social Protection for an update on the operation of MyFutureFund - the automatic enrolment retirement savings system; and if he will make a statement on the matter. [46027/26]

On behalf of Deputy Brennan, I ask the Minister to provide an update on the operation of MyFutureFund, the automatic enrolment saving scheme.

The programme for Government contained 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 greater comfort and security regarding their retirement income. MyFutureFund was commenced on 1 January 2026. All elements of the system are operating as planned. The employer and participant website portals are fully functional and there is a very high level of compliance by employers registering for the scheme and remitting contributions. Since 1 January, based on analysis of payroll data from Revenue, over 835,000 employees have been automatically enrolled in MyFutureFund. These employees work for approximately 112,750 employers. In addition, more than 9,000 employees have applied to join MyFutureFund voluntarily. Approximately €323 million of contributions have already been collected for investment with the three contracted investment managers. This includes the employer and the State top-ups, meaning contributors have already seen a 133% increase in their fund over and above their personal contribution. In years to come, with these expected investment returns and top-ups, participants should continue to see their funds accumulate to deliver a significant savings pot for their retirement. The National Auto-Enrolment Retirement Savings Authority, NAERSA, is the statutory body responsible for the administration of MyFutureFund. It is running a campaign on social media, print, radio and TV highlighting the benefits of MyFutureFund for participants. Alongside this, my Department will continue to work closely with NAERSA to ensure awareness of the scheme, the easy administration for employers, and the benefits of saving for retirement for employees. I thank the staff and board of NAERSA for their exception work on the introduction of MyFutureFund, and all the team within my Department, particularly Mr. Tim Duggan who led the work and is just retiring as assistant secretary. I thank him not just for his work on automatic enrolment but his contribution to the State generally.

I join with the Minister in those comments. The establishment of the auto-enrolment scheme was a very significant measure. It had been spoken about for many years. Provision for people's future retirement is incredibly important and auto-enrolment makes it easier for people to make that decision. There is an opportunity to opt out of the scheme. While we have very significant numbers enrolled in the scheme, we want to make sure those numbers do not decrease as time goes on. I encourage the Minister's Department to do everything it can to communicate the benefits of involvement in this scheme or any other pension scheme. We must ensure that people plan for their future and have that greater degree of financial independence. I ask the Minister about ongoing participation in the scheme and how the Department is monitoring those numbers.

It has been very successful so far. A Revenue analysis shows that 835,000 workers have been automatically enrolled. Over 9,000 have joined the scheme voluntarily and 112,750 employers are involved. Contributions thus far total €323 million. As I have said, the National Automatic Enrolment Retirement Savings Authority is running a campaign outlining the benefits of MyFutureFund. That will continue as the opt-out process opens. I know people are under pressure. I am very conscious of that pressure but I made the point during the run-in to the introduction of MyFutureFund that, if you get to the age of 66 and have no retirement plan in place, you will face a massive drop in income. Going from €48,000 or €50,000 a year to €16,500, which is what the State contributory pension provides, is an extraordinary drop. MyFutureFund gives those 835,000-odd people a substantial cushion to alleviate the impact of that drop. That is what it is about. It is about looking to your retirement, when you will not be earning the kind of money you may be earning today, and making provision for that.

I appreciate that. I reiterate my point on ensuring that people remain within the scheme. I was recently at an apprenticeship fair and one of the people encouraging people to take up apprenticeships indicated that, by participating in the workforce earlier, they would be contributing to their pensions for a much longer period than people who went on to third level. The numbers are staggering. Whenever you start paying into your pension, those extra few years make a huge difference. That is the reason the auto-enrolment scheme is so important. It is the reason it will have a real impact over decades. It is also why I want to ensure that we retain as many people as possible within the scheme and that the benefits are communicated.

As I have said, the benefits are very much there. Somebody at the age of 23 may feel they are a long way from the age of 66. Looking around the room, I do not see anybody in that space. I assure the Members I am talking about the age of 66. However, it does happen. You get there very quickly and you do not notice it. We genuinely do have a major gap in pension coverage in this country. It is fine now, when we have four workers for every person over the age of 66, but, by the time we get to 2050, which is not that far away, we will have two workers for every such person. I reiterate that the State pension will continue to be the bedrock of our pensions system but we also have to ensure that people have adequate income provision for their retirement years. That is what MyFutureFund is about. We are the last country in the OECD to do this. That is not something to be proud of but it has allowed us to learn from systems across the OECD and from mistakes that were made. We have tried to ensure that our system is user-friendly and that it supports participants and delivers the outcomes we want. The figure of 835,000 enrolees has shown that to be right.