A new retirement savings scheme for workers will soon be passed into law. 

The auto-enrolment pension savings scheme has been passed by both Houses of the Oireachtas and will now be sent to the President for his signature.

Ireland is the only OECD country that does not yet operate an auto-enrolment or similar system as a means of promoting pension savings.  

All employees not already in an occupational or equivalent pension scheme, aged between 23 and 60, and earning over €20,000 across all of their employments, will be automatically enrolled. 

A pensioner holding euro coins in his hands. Picture by: Weyo / Alamy Stock Photo

It will be voluntary but will operate on an ‘opt-out’ rather than an ‘opt-in’ basis. Eligible employees will be automatically enrolled but will have the choice after six months to opt-out or suspend participation.  

The first enrolments are set to happen next year with the scheme being gradually phased in over a decade.

Employees will have a range of four retirement savings strategies to choose from.

Main image: Hands of a pensioner holding a leather wallet with euro currency money.