Auto-Enrolment Ireland vs Private Pension: Which Is Better for You?

Retirement planning in Ireland is changing. From January 2026, the Government is launching My Future Fund, a new auto-enrolment scheme that will automatically sign up hundreds of thousands of workers to a pension for the first time.

For some, this is the push they need to start saving. For others - particularly higher earners or those already in private schemes - it raises an important question:

👉 Is My Future Fund really the best way to save for retirement, or is a private pension still the smarter choice?

The difference comes down to how contributions are taxed, how much control you want, and what return you get for every euro you put in. This article breaks it down in plain English, with interactive calculators so you can see the impact for yourself.

What Exactly Is My Future Fund (Auto-Enrolment)?

The Irish State is introducing auto-enrolment to address one big issue: too many workers have no private pension at all and may be relying solely on the State Pension in retirement.

Here’s how it works:

• Who’s included? Employees aged 23–60 earning €20,000+ per year, and not already in a pension.
• Contributions: Start small (1.5% employee and 1.5% employer in 2026), rising every 3 years until both contribute 6% by 2034.
• State top-up: For every €3 you contribute, the Government chips in €1.
• Deductions: Taken after tax, meaning you don’t get income tax relief at source.
• Administration: Managed centrally by the State, and your pension fund follows you if you switch jobs.
• Cap: Contributions (and employer/State matching) only apply to earnings up to €80,000.

Pros of Auto-Enrolment

• Makes sure you’re saving something.
• Employer is required to match your contribution.
• State top-up gives you an instant uplift.
• Simpler and less admin than setting up your own private pension.

💡 Key insight: The State top-up is often described as “€1 for every €3.” In practice, this is equivalent to about 25% extra value on your contributions.

Cons of Auto-Enrolment

• No upfront income tax relief.
• Limited investment fund choices.
• Locked-in structure—less room to optimise or tailor.

Try it for yourself:

Use our Future Fund Calculator below to see exactly how much will be deducted from your salary each year, how much your employer contributes, and how the State top-up boosts your pension savings.

Bottom Line

• Auto-Enrolment is better than nothing - and a great entry point for those without pensions.
• Private pensions are generally more tax-efficient and flexible, especially for higher earners.
• The real answer is personal - and that’s why running your own figures is essential.

And if you’d like an expert to walk you through the numbers, contact us today and ask abour our Pension & Tax Review Service can show you exactly which route (or combination) maximises your long-term wealth.