Minister for Social Protection Heather Humphreys anticipates swift progress of auto-enrolment pension legislation, aiming for implementation by year-end. The proposal entails a shared contribution model, where for every €3 contributed by a worker, the employer adds €3, with an additional euro from the state.
This initiative targets the 750,000 individuals, predominantly women, currently without pension coverage, ensuring financial security in retirement. Acknowledging employer concerns, the phased approach over ten years mitigates immediate cost burdens, starting at 1.5% of gross pay and gradually increasing to 6% by year ten.
Ms. Humphreys is committed to presenting the draft legislation to Cabinet imminently, followed by parliamentary deliberation. Drawing from European models, she aims to rectify Ireland’s absence in auto-enrolment systems, emphasising the necessity of proactive measures to prevent income disparities upon retirement.
With a focus on equitable pension provision, Humphreys emphasises the importance of avoiding income declines post-retirement, supplementing the existing state pension. Through diligent effort and consultation, she aims to ensure a smooth transition towards a more inclusive and sustainable pension framework.
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