Frequently Asked Questions
Why was this scheme set up?
The aim of Automatic Enrolment is to address the pension coverage gap that exists in Ireland and to help provide for better retirement incomes for workers.
Who is running this scheme?
The scheme is being introduced by the Department of Social Protection, who will set up the National Automatic Enrolment Retirement Savings Authority to administer it.
Is it a pension?
No. It’s a retirement savings scheme, similar to a pension but not subject to pension rules and regulations.
Who is exempt from joining the scheme?
Existing members of occupational pension and PRSA’s – contributions via payroll
Self – Employed, Non earning.
Aged under 23 or over 60.
Earning less than €20,000.
Can I opt out of the scheme?
Yes, after 6 months in the scheme. You will automatically brought back in after 2 years.
What if I change jobs?
The scheme is linked to the employee, not the employer, so no change unless you join a pension scheme with your new employer.
Can I make additional voluntary contributions?
No. But you can set up a personal pension or PRSA and contribute to that.
Can I pick the investment fund?
Yes. Automatically invested in lifestyle fund unless you choose a low, middle or high risk fund.
When can I access the savings?
You can access the funds at the state pension age, currently age 66.
You will receive a lump sum payment with tax treatment similar to a PRSA
What happens if I die before retirement age?
The accumulated savings forms part of your estate
