Auto enrolment retirement savings system for Ireland

CIPD Ireland participated in the consultation on the Government’s strawman on the auto enrolment retirement savings system for Ireland

We believe urgent action is required to address the looming pension crisis, auto enrolment is the right thing and we support its introduction in principle. We welcome the structure, and format of the Strawman document which facilitates meaningful and constructive engagement. There are complex issues at stake at policy level and in terms of implementation and practicalities. 


The introduction of auto enrolment will have an immediate financial impact on both business and employees. We await the outcome of the ESRI impact analysis.  In order to recognise both the payroll burden on employers and the risk of minimal pay increase that many employees will face, additional tax benefits should be assessed to off-set the pension cost burden where possible.

As well as commenting on the current proposals, CIPD Ireland believes the following are not sufficiently considered:

  • A communication work stream focused on future savings should be built in at this early stage of the process to win engagement. 
  • The options available at the income draw down phase need greater attention.
  • The implications and pathways for those who currently have pension contributions of less than 14% in total, and/or who wish to transfer to a lower cost State pension model need further development. This stream should also recognise the high level of employer supports needed to manage the process, especially by SMEs.
Read the full report below:  
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