June 17, 2026

Auto-Enrolment Ireland: Is MyFutureFund Enough for Your Retirement?

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Auto-enrolment is a mandatory retirement savings system designed for employees who do not currently have supplementary pension coverage. In Ireland, the scheme is called MyFutureFund and commenced in January 2026.

Under the scheme, workers aged 23 to 60 earning €20,000 or more per year are automatically enrolled and begin building a retirement fund through contributions from themselves, their employer, and the Government.

At One Quote Financial Brokers, we believe auto-enrolment is a very welcome development. Historically, many employees reached retirement with little or no pension provision outside of the State Pension. MyFutureFund is a significant step towards improving retirement outcomes for future generations.

However, like any pension arrangement, auto-enrolment will suit some employees more than others. For certain workers, particularly higher earners or those starting pension planning later in life, the scheme may have limitations in areas such as:

Pension tax relief
Age of enrolment
Additional Voluntary Contributions (AVCs)
Earnings cap restrictions

1. Reduced Tax Relief Compared to a Private Pension

One of the biggest drawbacks of auto-enrolment for higher earners is the treatment of tax relief.

With a standard pension such as a Personal Retirement Savings Account (PRSA), contributions receive income tax relief at your marginal rate. For many employees earning above the higher-rate tax threshold, this means relief of up to 40%.

Under MyFutureFund, the Government top-up is broadly equivalent to tax relief of only 25%.

While this difference may not have a major impact on younger or lower-paid employees today, it can become increasingly significant as earnings rise throughout a person’s career.

2. Contributions Increase Slowly

Employees joining the scheme later in their careers may not fully benefit from the maximum employer contribution.

The contribution rates are phased in over a 10-year period as follows:

Years 1–3: 1.5%
Years 4–6: 3.0%
Years 7–9: 4.5%
Year 10 onwards: 6.0%

This means that someone approaching retirement age may never receive the full 6% employer contribution before they retire, any for anyone enrollee regardless of age truly meaningful contibution levels take some time.

3. Contributions Are Subject to an Earnings Cap

Auto-enrolment contributions are calculated on earnings up to a maximum of €80,000.

For example, an employee earning €100,000 will only have contributions calculated on the first €80,000 of earnings.

During the initial phase, the employee contribution is capped at €1,200 annually (1.5% of €80,000). Employer and Government contributions are similarly limited by this earnings cap.

Higher earners may therefore need additional pension arrangements if they wish to maximise retirement savings.

4. No Flexibility for Additional Voluntary Contributions

Unlike many private pension arrangements, MyFutureFund does not currently allow members to vary contribution rates or make Additional Voluntary Contributions (AVCs).

Employees must contribute the prescribed percentage set by the scheme.

If you wish to contribute more towards retirement, you will need a separate pension arrangement such as a PRSA.

Is MyFutureFund Enough?

Despite these limitations, MyFutureFund remains an excellent initiative.

It encourages pension saving among younger workers who may never have considered retirement planning and provides a straightforward way to start building long-term financial security.

However, if you are starting pension planning later in life, have higher earnings, or simply want to maximise your retirement benefits, relying solely on auto-enrolment may not be enough.

For many people, a Personal Retirement Savings Account (PRSA) can be an effective way to supplement their MyFutureFund pension and take advantage of additional tax-efficient retirement savings opportunities.

Our PRSA Options

As an independent financial broker, One Quote Financial Brokers provides access to a wide range of insurance-based PRSA providers, offering extensive investment choice and flexible charging structures.

We cater for investors of all experience levels, whether you require full financial advice, initial guidance, or an execution-only service.

Our PRSA solutions offer:

100% allocation of contributions
No fund choice restrictions
Access to Non-Standard PRSAs
No policy fees
No fund switching fees
No early exit fees

Subject to provider minimum Annual Management Charges (AMCs), our most competitive charging structures are as follows:

Full Advisory Service

(Subject to potential 15-year term requirements)

€500–€999 per month: From 1.25% AMC
€1,000+ per month: From 1.00% AMC

Initial Advisory Service

(Subject to potential 15-year term requirements)

€500–€999 per month: From 0.95% AMC
€1,000+ per month: From 0.70% AMC

Execution-Only (Non-Advised)

€350+ per month: From 0.35% AMC
One-off implementation fee from €750

Learn More About PRSAs

If you are considering supplementing your MyFutureFund pension with a PRSA, contact One Quote Financial Brokers to discuss the most suitable option for your retirement goals.