My Future Fund: A Complete Guide

My Future Fund (MFF) is Ireland’s first national automatic enrolment pension scheme, beginning 1 January 2026. It’s designed to address the fact that over 750,000 workers have no private pension and will rely solely on the State Pension (€277.30/week in 2025).

If you work in Ireland and meet the eligibility criteria, you will be automatically enrolled in a retirement savings plan, with contributions from you, your employer, and the State. The contributions scale up gradually over 10 years to avoid sudden shocks to take-home pay.

Eligibility Rules

You will be automatically enrolled if you meet the following conditions;

• Age: Between 23 and 60 years old
• Income: At least €20,000/year (gross)
• Pension status: Not already in a qualifying pension scheme through your employer.

Note: "Qualifying" means it must meet standards set by NAERSA (National Automatic Enrolment Retirement Savings Authority). If you’re in a scheme but your employer’s contribution is minimal, NAERSA can decide it does not qualify, forcing auto-enrolment.

Who can join voluntarily

• Ages 18–22
• Ages 61 up to State Pension Age (currently 66)
• Those earning below €20,000/year
• People who have opted out previously but now want to rejoin

Who is excluded

• Self-employed (at launch - future expansion possible)
• Employees taxed entirely outside Ireland
• Members of exempt foreign pension schemes only if payroll confirms compliance

Contribution Rates

Contributions grow in phases over a decade:

• In the first 3 years, your contribution rate is 1.5% of gross pay, matched by your employer, plus a 0.5% State top-up
• Every 3 years, the rates increase - first to 3%, then 4.5%, and finally 6% for both you and your employer, with the State top-up doubling accordingly
• By year 10, if you earn €50,000, you’ll be adding €3,000/year yourself, your employer will match €3,000, and the State will contribute €1,000 - €7,000 in total

Special Rules on Contributions

• Cap at €80,000 salary: Contributions above that income level are ignored. If you earn €100,000, only the first €80k counts
• Changing jobs: Your pension “pot” follows you. Your contributions from one job are portable, with no need to start a new account
• Multiple jobs: If the total across all jobs exceeds €20k and you meet age rules, you’ll be enrolled in each eligible job, but contributions still respect the €80k cap in aggregate
• Suspension: You can pause all contributions (yours, employer’s, and State’s) for 1-2 years. This is not an opt-out; you keep existing funds invested

Opting Out - Rules & Consequences

• You cannot opt out immediately. You must stay enrolled for at least 6 months
• Opt-out window: Generally 7th–8th month after enrolment or after a rate increase

If you opt out:

• You get your contributions back in cash.
• Employer and State contributions stay in your pension - you cannot cash them out.
• Automatic re-enrolment every 2 years unless you are in another qualifying scheme.

Investment Options

• Default option: Lifecycle fund — higher-risk assets when you’re younger, shifting to lower-risk as you near retirement
• Alternative funds: Conservative (low risk), Balanced (medium risk), Growth (high risk) - available through the MFF portal (not yet available)
• No self-selection of individual shares or property — it’s a pooled investment approach

Retirement Age & Options

When you can access it

• Normally at State Pension Age (currently 66, rising to 67 in 2031 under current legislation)

Earlier only if:

• Severe ill-health (medically certified and approved by NAERSA)
• Death (fund goes to your estate, usually tax-free before retirement age)

Retirement Options

1. Tax-free lump sum: Up to 25% of fund value, within overall lifetime tax-free limits (Standard Fund Threshold currently €2 million)
2. Annuity: Buy a guaranteed income for life
3. Approved Retirement Fund (ARF): Keep funds invested, draw down as needed
4. Combination: Mix lump sum, ARF, and annuity to balance flexibility with security

Important: Unlike UK auto-enrolment, there’s no “cash out all at once” option — must follow pension drawdown rules.

Learn more about your retirement options here.

Non-standard Cases

1. High earners

• Example: Sarah earns €120k
• Contributions are calculated on €80k only
• At final phase (6% + 6% + 2%), that’s €4,800 (Sarah) + €4,800 (employer) + €1,600 (State) = €11,200/year
• Sarah could open a separate PRSA to invest above the €80k limit

2. Seasonal or variable income

• Income drops below €20k mid-year: If you qualified at start of year, you stay in until next annual assessment
• Freelancers with multiple contracts may be excluded until self-employed expansion

3. Job changes

• Example: Mark works 6 months for Employer A (€30k salary) and 6 months for Employer B (€40k salary)
• MFF account remains the same; both employers contribute during their period
• Contributions from both count toward the €80k cap

4. Maternity / parental leave

• Employer contributions based on actual pay. If on unpaid leave, no contributions are made - but pot remains invested

5. Death before retirement

• Fund value paid to estate, usually tax-free. Beneficiaries may invest in their own pension or take cash

6. Opt-out, then re-enrolment

• Example: Aoife opts out in 2027
• Gets her contributions back, keeps employer/State top-ups
• In 2029, automatically re-enrolled if still eligible

7. Suspension

• Example: John suspends in 2030 for 2 years while paying off a mortgage
• Pot stays invested; no new contributions
• At end of suspension, contributions resume at prevailing rates

8. Near-retirement joiner

• Example: Mary joins at 64
• Only 2 years of contributions possible before age 66
• Still gets matching and State top-up, making it highly valuable despite short saving period

Why MFF is Different from Other Pensions

• Automatic - you don’t have to set it up yourself
• Triple boost - employer + State top-up
• Portability - one account across jobs
• Compulsory employer participation - can’t opt out of paying
• Default fund for those who don’t choose - reduces inertia risk
• No tax relief on employee contributions - instead, employees benefit from employer and government contributiond

Real-World Case Studies

Case 1 — Long-term saver
Emily, 25, earns €35,000:

• Joins in 2026, never opts out
• By 2066, with average 4% investment growth, pot could exceed €600,000 in today’s money

Case 2 — Late joiner
Tom, 58, earns €50,000, no pension:

• Joins automatically in 2026
• Contributes for 8 years until age 66
• Pot still grows to over €80,000 with matching, far better than nothing

Case 3 — Career break
Sarah, 33, earns €42,000:

• Contributes for 5 years, suspends for 2 years to care for a child, then resumes
• Loss of two years’ contributions reduces pot by ~€30,000 at retirement due to missed compounding

Case 4 — High earner using multiple vehicles
David, 45, earns €150,000:

• MFF contributions on €80k cap
• Also pays €10,000/year into a PRSA for extra tax relief

Case 5 — Ill-health retirement
Anna, 54, develops a serious illness and stops working

• NAERSA approves early access; she takes lump sum + annuity for stability

Key Takeaways

My Future Fund is Ireland’s first nationwide auto-enrolment pension scheme, launching 1 January 2026, to tackle low private pension coverage. If you’re aged 23–60, earning at least €20,000 per year, and not already in a qualifying pension, you will be automatically enrolled. Others can join voluntarily, and the scheme is designed to be portable between jobs.

Over 10 years, contributions gradually rise from 1.5% to 6% of gross pay from both employee and employer, with the State adding 0.5%–2%. This triple-contribution system means your personal payments are more than doubled instantly, creating a strong compounding effect over time. Contributions only apply to the first €80,000 of earnings.

The scheme is administered by NAERSA, with minimal employer administration, and funds are invested through default lifecycle or selected risk-profile options. You can opt out only after six months, getting your own contributions back while employer and State contributions stay invested. Re-enrolment happens automatically every two years unless you’re in another qualifying scheme. Suspension for 1–2 years is also allowed.

At retirement (normally State Pension Age), you can take up to 25% of the fund tax-free (within lifetime limits) and use the remainder to buy an annuity, invest in an Approved Retirement Fund (ARF), or split between them. Early access is only possible in severe ill-health or on death.

Edge cases — such as high earners, short-term employment, late joiners, and career breaks - still benefit from MFF due to matching and top-up contributions, though the long-term value is greatest for those who join early and contribute continuously. Even a short membership period can produce meaningful results because the employer and State effectively subsidise your savings.

Bottom line

My Future Fund is a major structural change to Ireland’s retirement savings landscape. It removes inertia by making participation automatic, boosts savings through mandatory employer and State contributions, and offers portable, professionally managed funds. While not a replacement for additional voluntary pensions, it provides a foundation that almost every eligible worker will benefit from — the earlier and more consistently you participate, the greater the retirement security it can deliver.