Workers who have been automatically enrolled in the ‘My Future Fund’ pension scheme can choose to opt out of the system from today.
More than 800,000 people, including 9,000 who voluntarily opted-in, have been enrolled in the scheme since the start of the year and have saved over €400 million.
A two month opt-out window opens today and those who choose to leave the scheme will be automatically re‑enrolled after two years, if still eligible.
The administrator of My Future Fund, the National Automatic Enrolment Retirement Savings Authority (NAERSA) said people should carefully consider the decision to opt-out.
“By opting out, employees will forgo contributions from their employer, currently 1.5% of gross pay, and the State top‑up, which together significantly increases the value of each euro saved over time,” a NAERSA spokesperson said.
“For every €3 an employee contributes, the employer matches with €3, and the State adds €1 representing a €7 increase in the participants’ retirement savings,” the authority added.
Financial advisors are also urging participants to think before they decide to opt-out.
“It will give individuals who may be under pressure financially the opportunity to opt-out or they may have personal provision elsewhere sufficient to cover their retirement,” said Caroline Rowan, head of retirement solutions at risk management firm Aon Ireland.
“It’s a very important decision that may have a long-term impact on their quality of life in retirement,” Ms Rowan said.
