One of the reasons for the delay in the introduction of Ireland’s auto-enrolment (AE) scheme is to enable its launch to align with the country’s tax year, Minister for Social Protection, Dara Calleary, has said.

Ireland’s Department for Social Protection (DSP) has now confirmed that AE, which will be known as My Future Fund, will begin on 1 January 2026, a further three-month delay from 30 September.

The DSP said that aligning with the tax year provides a ‘natural reference point’ in the minds of both employers and employees, which will be relevant in the future when contribution increases arise.

Calleary said that in addition to aligning with the tax year, a delay also allows more time for payroll providers to prepare for the launch, and additional lead-in time for employers, to ensure they can be compliant from the start.

“I believe that My Future Fund will transform how people save for their retirement. This is a landmark policy, and all care must be taken to ensure that it is done in a way that best facilitates all stakeholders and recognises where legitimate concerns have been raised,” Calleary said.

“It is important that we start on the right foot and bring all stakeholders along with us. Deferring the collection of contributions for a short period of time is the right decision, acknowledging points raised through the extensive and ongoing consultation work as the operational and payroll systems are being built.”

Furthermore, the DSP noted that the delay will mean payroll providers will be able to incorporate any software updates within their normal annual work schedule, including any changes that may arise from Budget 2026 this autumn.

The department believes this will reduce the amount of administrative work they will have to do.

“There is never a perfect time to launch a scheme like this, but all care has been taken with the design to ensure that the burden on employers, both administrative and financial, is kept to a minimum. The contribution rates are being gradually phased in over a decade following the launch to ensure these labour costs can be absorbed,” the Minister said.

“In the long run, My Future Fund will be transformative for the Irish economy, as our two-out-of-three private sector employees who currently have no supplementary pension will get to enjoy a greater sense of wellbeing and financial freedom.”

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