Strong Early Commitment to Ireland’s Auto-Enrolment Scheme: At least 8 in 10 Plan to Stay After the First Opt-Out Window in July

Ireland’s landmark auto-enrolment pension scheme is proving successful in encouraging people to engage with retirement planning. New research released by Ask Acorn has revealed that more than eight in ten workers who have been automatically enrolled in My Future Fund are not planning to use this month’s “opt-out window” to leave the scheme.

The survey of 1,000 adults nationwide commissioned by Ask Acorn, a nationwide network of financial advisers, and carried out by IReach looked at whether enrolled workers will choose to stay, pause, or leave My Future Fund during the first opt-out period which runs from July 1st to August 31st.

Highlights from the Ask Acorn Autoenrollment Survey include:

• While 84% plan to remain in the scheme, 14pc will pause contributions
• Of the 16% of workers who said they are planning to opt out, half say they will redirect contributions to a private pension.
• People aged 25-34 show the strongest commitment, with 89% planning to stay enrolled. Just one in ten in this group is considering opting out.
• Among 45–54 year olds, 23% plan to exit the scheme entirely – but 13% will redirect savings to a private pensions arrangement

According to experts at Ask Acorn, the scheme has achieved its primary objective of getting workers thinking about their long-term financial future and that the next step is helping people to understand whether auto-enrolment alone will be enough to deliver the retirement they want.

Keith Butler, CEO of Ask Acorn, commented on the findings,

“While it’s still early days, these findings point to a strong initial vote of confidence in auto-enrolment and the role it could play in improving long-term financial security. It’s particularly encouraging to see such high participation among younger cohorts, who stand to benefit the most from starting early.

Auto-enrolment has succeeded in getting people engaged with pensions. The next conversation should be about whether people can now afford to do more. Someone who has received a salary increase or bonus since joining the scheme may be in a position to increase their retirement savings beyond the minimum contribution levels.

For many workers, that could mean complementing auto-enrolment with an additional pension arrangement that better reflects their long-term retirement goals.

Equally, employers who have now embraced workplace pensions through auto-enrolment might consider making higher contributions than the statutory minimum as part of supporting and retaining employees.

The important thing is that people don’t simply see auto-enrolment as the finish line. It should be the starting point for building a retirement plan that’s right for them.”

Young workers engaged but feeling the pressure

Of 18-24 year olds who have been enrolled, 64% plan to remain in the scheme, while 27% intend to stay enrolled but pause contributions. This is the highest pause rate of any age group, and experts at Ask Acorn suggest that cost-of-living pressures are already influencing behaviour among younger participants.

Women more likely to remain enrolled

The research also reveals a gender divide, with 73% of women planning to remain enrolled without making any changes, compared to 67% of men. Ask Acorn says this could be encouraging in the context of historically lower pension coverage among women in Ireland.

Mr. Butler continued,

“Higher levels of sustained participation among women could help to narrow long-standing retirement savings gaps over time, especially if engagement remains strong as the scheme matures. It also highlights the potential for auto-enrolment to play an important role in supporting more balanced and inclusive pension outcomes across the workforce.”

Regional differences in enrolment

Enrolment levels are higher outside Dublin, with 36% of adults in Munster and Connacht/Ulster enrolled, compared to 31% in Dublin and 25% in the rest of Leinster.