My Future Fund: Employees Face July 1st Opt-Out Decision for Auto-Enrolment Pension

Hundreds of thousands of employees automatically enrolled in the My Future Fund national auto-enrolment pension scheme since January 1st, 2026, face a two-month window starting July 1st to opt out. This scheme applies to employees aged 23-60 earning over €20,000 annually who are not already in an occupational scheme.

My Future Fund is a «soft mandatory» scheme: enrolment is automatic, but individuals can opt out after six months. Those who opt out will receive their own contributions back, but employer and government contributions remain invested. They will be automatically re-enrolled two years later, a cycle that continues until they reach 60, remain in the fund, or join a qualifying occupational pension.

Initial contributions are 1.5% of salary from the employee, matched by the employer, plus a government top-up of one-third of the employee contribution. These levels will rise over 10 years to 6%, 6%, and 2% respectively. While opting out might be easier for those facing financial hardship, re-enrolment occurs automatically.

Financial experts Ashling O’Neill (Clear Financial) and Munro O’Dwyer (PwC Ireland) advise comparing My Future Fund with occupational schemes. Key factors include employer contribution levels, tax treatment, and fees. Occupational schemes often offer higher employer contributions and tax relief on contributions, making them potentially more beneficial, especially for higher-rate taxpayers. My Future Fund is designed to be cost-efficient but lacks the advisory services and digital tools common in many occupational schemes. The fund's primary goal is to increase pension coverage, not to compete with existing occupational schemes.