Auto-Enrolment: Launch of My Future Fund

• Minister Chambers confirmed that the national auto-enrolment scheme (My Future Fund) will launch as planned in January 2026, mandating enrolment for employees aged 23–60 earning over €20,000 if not already in an employer pension plan.
• New Technical Amendments: The Tax Treatment of Pensions Finance Bill 2025 will provide for additional amendments to the tax treatment for the Auto Enrolment (AE) Retirement Savings Scheme. These will address the tax treatment of AE retirement savings on the death of the participant. Further amendments are also required to exempt AE provider schemes from investment undertaking tax, and to provide an exemption from USC for employer contributions to AE.
• Contributions: Employee and employer start at 1.5% of gross earnings, with a further 0.5% State top-up; these rates will increase over the next decade, reaching a total 14%.
• Opt-outs are only permitted in designated windows after initial enrolment or after contribution increases.

State Pensions

• The State Pension (Contributory) Personal Rate will increase by €10 per week for 2026 from €289.30 to €299.30 per week (assuming at least 2080 full rate contributions in order to obtain the maximum rate of State Pension (Contributory) being awarded at State Pension Age).
• Ancillary social welfare rates were also increased.

Standard Fund Threshold (SFT)

• The SFT (the maximum pension fund) will rise by €200,000 per year, from its current amount of €2m and reaching €2.8m in 2029.
• SFT path: €2.2m for 2026, €2.4m for 2027, €2.6m for 2028, and €2.8m for 2029.
• The Retirement Lump Sum formula is capped at €500,000.

• State Retirement age remains at 66 for now (but with an option to defer State Pension Contributory between ages 66 and 70, potentially increasing the payment amount).

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