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People Earning Over 20k Will Be Automatically Entered Into A Pension Plan Under New Scheme

Stock image: Pexels

The changes will come into effect from early 2024.

Cabinet has approved the auto-enrolment pensions plan which will see those who earn more than €20,000 automatically signed up to make contributions for their retirement fund.


However, people will be allowed to opt out of auto -enrolment after 6 months, but will be re-entered after two years.

The new scheme will cost the state €2.8 billion, and it will see 750 thousand people who don't currently have a pension automatically signed up.

The rate will start at 1.5 % of an employees wage and go up to 6% after ten years.

Employers will legally have to match the payments into the pension with the State also topping up the fund.

Social Protection Minister Heather Humphreys says this will be above and beyond the State pension:


Business correspondent Joe Lynam exlains how the pension will rise in increments:

 


 

 

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