Nest egg

The countdown to pension auto-enrolment is underway. But what does the change mean for employees and employers – and what comes next? Davin Spollen explains

Ireland’s pension landscape is set to change significantly with the introduction of the Government’s ‘My Future Fund’ – a new retirement-savings scheme.

From January 2026, eligible employees across all sectors will automatically enter the Government’s scheme unless they are already contributing to a qualifying plan via payroll.

For legal practices, auto-enrolment represents both a compliance requirement and an opportunity to review retirement-savings arrangements.

Employees

For some staff, this retirement-savings scheme may be the first time they see automatic retirement-savings deductions. Understanding eligibility, choices, and next steps is essential.

Automatic participation in a retirement-savings plan helps employees start saving consistently, benefiting from both employer and Government contributions. Even small contributions grow over time, and being enrolled earlier in your career ensures access to compound growth.

Awareness of pension options supports long-term financial wellbeing and helps plan for a secure retirement.

Eligibility

Staff will be automatically enrolled if they:

• Are aged 23 to 60, 
• Earn more than €20,000 per year, and
• Are not already contributing to a company pension scheme.

Having a personal pension outside of payroll does not exempt you from pension auto-enrolment; the exemption only applies if the pension is a qualifying payroll-deducted scheme.

It should be noted that employees working for more than one practice without a company pension are eligible for auto-enrolment at each employer separately, with contributions made independently by each.

Reviewing options

If your practice offers a pension scheme, consider whether participating aligns with your personal retirement goals. In many cases, employer contributions to a company pension can exceed the starting 1.5% from My Future Fund.

Joining a company’s scheme will stop auto-enrolment deductions and provide greater flexibility over your retirement savings. Your choice will depend on your personal goals, how long you plan to save, and your current tax situation. 

Tax relief

Contributions to pensions are eligible for tax relief at your marginal rate, subject to age-based limits. This can be particularly valuable for higher earners in the 40% tax band, boosting your retirement-savings potential.

If a company scheme does not exist, employees may still contribute to a Personal Retirement Savings Account (PRSA) via payroll, allowing them to save independently while still benefiting from tax relief and investment growth.

Now is a good time for employees to weigh up their retirement options – My Future Fund contributions versus the flexibility and tax benefits of a company pension or PRSA – and choose what works best for them  

See it as a prompt

Auto-enrolment is not just about compliance – it’s a prompt for both staff and practices to take stock of retirement savings and make informed decisions for the long term.

Auto-enrolment ensures every eligible employee participates in a pension, but also provides an opportunity for practices to review their retirement-benefits strategy.

Even for smaller practices, a clear and competitive pension offering can support retention, recruitment, and staff satisfaction.

Practices may wish to review:

• Current pension arrangements and their overall benefit philosophy,
• Membership levels and potential gaps in cover,
• Employer contribution levels relative to the Government scheme and competitors, and 
• Communication strategies to help staff understand the options available.

Engaging a broker or pension advisor can help ensure the approach aligns with both regulatory requirements and employee needs. Clear communication reinforces the practice’s commitment to employee wellbeing and ensures that staff are aware of the value of their benefits.

From January, with pension deductions appearing on payslips for the first time, employees will be more engaged and likely to question what their employer offers. For practices competing to attract and retain qualified solicitors and support staff, offering a thoughtful benefits programme that goes beyond
the Government scheme can make a meaningful difference.

Looking ahead

While it may now be too late to establish a company pension scheme in time to exempt employees from the January 2026 auto-enrolment start, both employees and employers still have options.

Employees who are automatically enrolled can opt out after a six-month participation period. If a company scheme is later introduced, they may choose to join it and become exempt from auto-enrolment at that point.

It’s also worth noting that employees who opt out after six months will be automatically re-enrolled after a two-year period, so reviewing participation regularly is important.

This flexibility means that auto-enrolment should not be seen as the endpoint of retirement planning, but rather as a prompt to reevaluate and refine how retirement savings and benefits are approached. Even small adjustments to contribution levels or communication can improve understanding and engagement for staff.

The Law Society recently hosted a free webinar for solicitors to help employers understand their obligations, payroll adjustments, and implications for employment contracts.

The session covered an overview of the auto-enrolment framework and how it will operate in practice, an overview of employer requirements, and last-minute checks and guidance. The webinar can be viewed at www.lawsociety.ie/running-yourpractice/practice-supportinformation-sessions. 

Queries can be emailed to: solicitorservices@lawsociety.ie.

Davin Spollen is vice-president of the Irish Institute of Pensions Management and CEO of Arachas Employee Benefits.