A quarter (25 per cent) of Irish businesses are yet to take action to prepare for the launch of auto-enrolment in January 2026, with many still concerned over the additional costs the initiative will bring, research from Aon has revealed.

The survey, which gathered views from 202 client occupational pension schemes in May of this year, found that more than half (59 per cent) of respondents have developed a strategic roadmap for pension auto-enrolment.

However, with just under six months to the launch of auto-enrolment on 1 January 2026, Aon warned that more work is still needed to make sure businesses are fully prepared for the changes necessary across payroll, people and processes.

In particular, Aon found that less than a tenth (7 per cent) of organisations have fully updated internal systems and legal documents ahead of the launch, while just 4 per cent of businesses have reached the stage of communicating to employees around the implementation of auto-enrolment.

In addition to this, nearly two-thirds (62 per cent) of respondents are still looking to enrol eligible employees in an existing pension scheme, in order to help enhance efficiency and avoid the complexity of running both an occupational scheme and the auto-enrolment scheme in parallel.

"With the launch of the new system now only a matter of months away, it’s crucial that organisations across the country ready themselves for the landmark scheme and fully harness the opportunity ahead to secure a dignified retirement for their people," Aon head of retirement consulting, Caroline Rowan, said.

“It's clear from our analysis that organisations in Ireland are largely making positive progress on their auto-enrolment journey and look set to reap the rewards in the coming months.

"However, it is concerning to see a sizable minority of businesses yet to take any action to prepare for the scheme."

The research also found that the majority (85 per cent) of organisations in Ireland have concerns about the introduction of pension auto-enrolment, with 52 per cent citing particular concerns over the additional costs.

This was closely followed by concerns around the additional complexity of running an existing occupational pension scheme in parallel to auto-enrolment, raised by 48 per cent of organisations.

Despite these concerns, the research also highlighted the positive impact auto-enrolment could have in creating a more equitable pensions landscape and meeting the evolving needs of Ireland’s workforce, with particular hopes around staff retention.

According to the survey, 35 per cent of organisations believe the new system of auto-enrolment will help attract and retain high-calibre talent by strengthening their employee value proposition as they navigate a highly competitive market for talent.

But Rowan emphasised that, given the "major" transformation required across payroll, people and processes, these businesses will need to "urgently accelerate" their preparations over the coming months to make this a reality.

“With less than six months to its introduction, now is the time for employers to ready themselves for the system," she stated.

"From updating payroll and HR policies to educating employees about the changes, a wide range of steps will be needed to ensure they’re fully prepared and can unlock the full potential of their people."

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