Auto-enrolment is coming to Ireland in 2025, and when it does, the new pension regime will create 800,000 new pension savers. Aside from giving individuals the confidence that they can fund retirement, the mandatory savings scheme is intended to ensure the state can meet its future commitments.
Individuals who do not already have a workplace pension scheme and who earn more than €20,000 per year and are aged between 23 and 60; will be automatically enrolled into the new system.
While auto-enrolment offers numerous benefits, it also presents a significant challenge for employers. The initial employer contribution, coupled with ongoing administrative burdens, can strain organisational resources. To navigate this evolving landscape, businesses must actively prepare for the implementation of auto-enrolment.
The planned start date has already been moved several times, and it is possible that the current deadline of September 2025 will be moved to January 2026, in order to match the next tax year. Whether it is moved or not, however, Zellis is here to provide information to employers, committed as we are to providing clear guidance and support throughout this transition period.
While businesses and other organisations may be aware of the need to budget for the initial 1.5 per cent employer contribution into their financial plans, the moving date has resulted in some uncertainty.
Zellis reduces this uncertainty with clear information and, in addition, enhances employee engagement by helping employers communicate effectively with employees about the benefits of auto-enrolment, or company pensions.
Services include a preparation service, including an employee preparation pack, and our deep engagement means we can guide organisations when it comes to dealing with questions; such as the potential benefits afforded by the pension incentive rules for company pensions, versus adopting auto-enrolment.
One issue, for example, is that auto-enrolment means doing away with the traditional six month probation period, resulting in higher staff on-boarding costs. Zellis can assess who would be auto-enrolled and determine what employer costs would be, and how they can be mitigated, how much a scheme will cost over time and assess churn rates.
At Zellis, we are also keeping our clients up-to-date through our regular engagements with the Department of Social Protection and the auto-enrolment scheme administrators.
By partnering with Zellis, businesses can navigate the complexities of auto-enrolment with confidence. Our dedicated team is committed to providing timely updates, expert advice, and practical solutions to help you succeed in this new era of retirement savings.
Contact us for a free consultation: www.zellis.ie