770,000 Workers Can Opt Out of My Future Fund Pension Scheme From July 1st

Almost 770,000 workers, compulsorily signed up to the My Future Fund auto-enrolment pension scheme on January 1st, can opt out from July 1st. This two-month window allows participants to withdraw contributions made to date, which will be refunded. However, employer and State contributions will remain invested in the scheme.

The scheme, designed to provide a reasonable retirement income, deducts 1.5% of a worker’s gross wage, matched by the employer, with the State adding €1 for every €3 from the worker. These contributions will gradually increase to 6% of wages by 2035. Deductions apply to workers aged 23-60 earning over €20,000 annually without other pension deductions.

To opt out, participants must log into the My Future Fund portal using MyGovID during the opt-out window, which closes at the end of August for those enrolled in January. Future opt-out periods are in January and February of 2029, 2032, and 2035. Workers can also pause contributions at any time.

Naersa, overseeing the scheme, noted that over 6,600 employers had not yet signed up by March and face potential prosecution. While the scheme is recommended for standard-rate taxpayers, higher-rate taxpayers might benefit more from traditional occupational pensions if their employer contributes.