What You Need to Know Before January 2026
A major shift is coming - is your business ready?
From 1 January 2026, Ireland’s long-awaited auto-enrolment pension scheme will go live, changing how many employers support their staff’s retirement savings.
If your business doesn’t currently offer a workplace pension, this new legislation means you’ll be required by law to enrol certain employees into the government’s scheme — and contribute to it.
While the aim of boosting pension coverage is a good one, the state’s new solution won’t be the best fit for every business.
That’s where we come in.
Here at Financial Planning Matters, we help Irish SMEs navigate these changes and design smarter pension solutions that support your business goals, keep your people happy, and give you more control over how contributions are managed.
What is Auto-Enrolment?
Auto-enrolment is a new pension scheme being introduced by the Irish government for employees aged 23–60 who earn €20,000 or more annually and are not already in a pension scheme.
These employees will be automatically enrolled — and both they and their employer will be required to contribute, with the State providing a top-up.
Contribution Phasing (Over 10 Years):
Starts at 1.5% employer / 1.5% employee + 0.5% State top-up
Rises every 3 years to a maximum of 6% employer / 6% employee, with a 2% State contribution
Applies to earnings up to €80,000
Download Our 1-Page SME Auto-Enrolment Checklist
Want a simple, plain-English overview of your auto-enrolment obligations?
Key Limitations of the Government Scheme
While the idea is sound, there are several significant drawbacks for business owners and their teams:
Limited Tax Relief
Auto-enrolment offers a fixed State top-up of 33% (i.e., €1 for every €3 contributed).
For higher earners, this falls well short of the 40% tax relief available through an employer-sponsored occupational pension or PRSA scheme.Restricted Fund Choice
The State’s scheme will offer just 4 investment options, with no access to personalised advice or fund-switching based on risk appetite or goals.No Contribution Flexibility
You can’t increase contributions or pay lump sums into the State scheme — unlike private pensions, which offer greater flexibility as your business grows.
No Early Access
State scheme funds are locked until retirement age, even if the employee leaves the company. Earlier pensions may allow earlier access (as early as age 50) when service ends.No Control Over Provider or Structure
The State will manage contributions centrally — employers won’t have control over the provider or platform, or the ability to choose a broker for advice.
Why Set Up a Pension Scheme Now?
By setting up your own employer-sponsored pension or PRSA scheme now, you can:
Lock in higher tax relief for employees
Offer more choice and flexibility
Retain control of the structure, provider, and investment strategy
Avoid being defaulted into a scheme that may not suit your workforce
Show leadership and commitment to employee wellbeing
Book Your Free Employer Pension Consultation
Let’s chat about what’s right for your business — before January 2026 creeps up.
Email us at advice@fpms.ie to book a no-obligation call with one of our advisors
We’ll Handle the Hard Stuff — So You Don’t Have To
At Financial Planning Matters, we work with business owners to design, launch, and manage employer pension schemes tailored to your needs — whether you have 2 employees or 200.
Our team of Certified Financial Planners and Paraplanners will help you:
Compare options (group PRSA vs occupational pension)
Manage all setup and compliance requirements
Create employee education and onboarding materials (and come and present them to your teams)
Support ongoing queries and annual reviews
Bonus: Got Pensions from Previous Employers?
Many business owners still have old pensions sitting idle in outdated group schemes. We can help you regroup those too — often improving performance and giving you more flexibility and visibility.
Trusted Partnerships
We work with some of the top Insurance and Financial Investment companies in Ireland:
