Research findings

Understanding has increased – but is still low

More preparation is needed

Cost calculations are incomplete

Companies have taken these steps, so far

Employee participation expectations

Further investments are anticipated

What the results tell us

Understanding has increased – but is still too low

Employers' understanding of the pension auto-enrolment rollout timeline and steps has significantly improved from 2023 to 2025.

In 2023, only 30% of employers reported having ‘some understanding’ of the rollout schedule, but this has increased to 43% in 2025. Additionally, the percentage of employers reporting 'no understanding’ almost halved from 21% in 2023 to 12% in 2025.

However, 40% in total still admit to having ‘very little or no understanding’, despite increased efforts by the Irish government and relevant bodies to spread information and educate employers about the upcoming changes.

Growing this awareness will be crucial to ensure organisations are abreast of their obligations and the necessary steps to comply with the new requirements. After all, this will be the largest change to the Irish pension system since 1960.

As confirmed in the most recent Budget, the auto-enrolment scheme is scheduled to begin on 30 September 2025. My Future Fund will automatically enrol employees who are not currently members of a pension plan but earn more than €20,000 per year and are aged between 23 and 60.

The scheme aims to ensure that employees have additional savings for retirement, supplemented by contributions from both employers and the state.

Employers' preparedness for the introduction of auto-enrolment has shown a positive trend, but there is still a significant need for improvement. Today, 54% of employers feel ‘somewhat prepared’, up from 37% in 2023. Meanwhile, one in four are still unprepared.

At one end of the spectrum, there has been very little movement. The proportion of ‘completely prepared’ employers has remained static at roughly one in 5. A very similar segment continues to feel ‘somewhat unprepared’.

Encouragingly, a large amount seem to have moved further towards readiness. The ‘completely unprepared’ category has shrunk fivefold, while the ‘somewhat prepared’ has grown significantly.

Progress is positive, but incomplete. With 25% of respondents admitting to a state of unreadiness ('somewhat' or 'completely unprepared), the pressure is now on for authorities and organisations to fill the knowledge gap before the scheme launches this autumn.

The auto-enrolment scheme will require employers to make contributions to their employees' pension funds, alongside the employees' own contributions and additional top-ups from the state. Employers must ensure that their payroll systems are capable of handling these contributions and that they are fully aware of their obligations under the new scheme. The significant number of unprepared employers underscores the need for continued support and resources.

More preparation is needed

Cost calculation is incomplete

While most organisations have started calculating the implementation costs they expect to incur, more work undoubtedly needs to be done. A total of 79% have produced some forecasting, whether partial or complete. However, this combined figure has moved only slightly from 72% in 2023. The one-in-five organisations that still haven't done the maths today could be putting themselves at risk of costly surprises further down the line.

As suggested by responses to the next question, many employers expect their payroll systems to handle cost calculations for them. However, without an initial baseline analysis, they may not understand their existing exposure before projecting future costs.

When asked how they expect to forecast contribution costs, reliance on ‘multiple systems including Excel’ has taken a significant dip of ten percentage points.

More respondents are now looking to their payroll system (42%); this answer saw a five percentage-point increase.

The finance system saw a more modest increase of three points to 35%. This shift may well reflect a growing awareness of the benefits of integrated technology, and a gradual evolution beyond spreadsheets.

Payroll providers can indeed analyse data and present existing cost exposure, incremental costs based on anniversary rate increases, and likely additional costs based on employee growth rate and percentage adoption of the company pension scheme benefit.

However, the cost of auto-enrolment includes not only contributions to the pension funds but also the administrative expenditure associated with managing the scheme. Employers need to factor in these costs when planning budgets and ensure that they have the necessary resources to comply with the new requirements.

Companies have taken these steps, so far

The evidence is that Ireland’s employers are increasingly taking steps to prepare for auto-enrolment. But is it enough at this relatively late stage?

On the technical implementation side, more than 40% have ensured that their payroll system is able to handle the necessary calculations, deductions, and contributions. Roughly one in five is considering outsourced payroll services for help navigating the transition.

When it comes to employee relations, the picture is mixed. While 45% have launched awareness campaigns for HR and payroll, less than a third have a communications plan for the wider employee network. Meanwhile, a third have updated employment contracts to reflect the upcoming change.

More than one in ten (12%) report no action yet taken to prepare for auto-enrolment.

Anecdotally, there appears to be a misconception that companies with existing pension schemes will not be affected by the new state auto-enrolment process. This is not the case. Unless a company has contractually mandated membership of its pension scheme for all employees, it will be impacted by the auto-enrolment process. Organisations will be obliged to administer the scheme, comply with the legislation, or risk incurring penalties, as authorised by the Automatic Enrolment Retirement Savings System Act 2024.

In the next section, we’ll set out a list of key actions that organisations can take to prepare their people, platforms, and providers for the launch of My Future Fund.

Employee participation expectations

Employers are now expecting greater employee participation in the pension scheme than previously. This year, 17% of employers predict 90-100% of their employees will stay opted in, up from 8% in 2023. The expectation for 80-89% participation also rose to 17% — from 13% in 2023.

Most (63%) now expect to see 60-100% participation, whereas two years ago, only 49% thought it would be that popular.

The auto-enrolment scheme operates on an opt-out basis, meaning that employees will be automatically enrolled but can choose to opt out after six months. This approach is designed to encourage higher participation rates and ensure that more employees are saving for their retirement. The increased expectation for participation suggests employers are confident in the scheme's acceptance among employees.

Further investments are anticipated

There's a clear trend towards further investment in payroll systems and financial forecasting tools. Today, 48% of organisations anticipate further investment in payroll systems modernisation, up from 30% in 2023.

Planned spending on financial forecasting tools and integrations (payroll/HCM/reward) remained steady, with around three in ten selecting these options. It's clear that employers recognise the need for ongoing technological upgrades and accurate financial planning to support the auto-enrolment process.

Interestingly, there was a fall in the commitment to ‘in-house talent and legislative expertise’, perhaps linking to the earlier result that one in five is considering outsourced payroll services.

It seems that the approaching deadline has focused minds and prompted closer examination of capabilities and costs. Only 17% now say they expect ‘no further investment’, down almost half from 30% two years ago.

What the results tell us

The research results indicate that, while there are positive signs of progress, there are significant gaps that need urgent attention. The fact that many employers still feel unprepared is alarming and highlights a critical need for immediate action and support. Without swift measures, these employers risk non-compliance, financial penalties, and operational disruptions.

Additionally, many organisations have not yet calculated the cost of auto-enrolment, meaning they are at risk of unexpected financial burdens. The anticipated further investments in payroll systems and financial forecasting tools underscore the need for technological upgrades and accurate financial planning. However, the current pace of preparation needs to be stepped up.

Employers should accelerate their efforts to ensure they’re fully equipped to handle the new requirements. The successful implementation of the auto-enrolment scheme depends on immediate and concerted efforts to address these readiness gaps.