Written by Karen Bennett of BrightPay. Ireland is set to introduce pension legislation that will compel all employers to offer workplace pensions to their employees. This might seem like a radical idea to the Irish workforce but automatic enrolment has been largely successful across the world in countries such as Australia, New Zealand and the UK.
Two-thirds of private-sector workers in Ireland have no pension provision. Auto enrolment stems from a need to boost employees’ pension pots in preparation for their retirement. It is currently not feasible for the Irish government to sustain and fund the growing population of the older generation.
Roadmap for pension reform
Leo Varadkar, Irish prime minister, said: “This issue has been long-fingered for too long, and now that the economy is recovering strongly we must act decisively, and we will publish a five year roadmap for pension reform before the end of the year.”
Just like we saw here in the UK, Ireland will make auto enrolment the law and change the current legislation. The objective is to enable every worker in Ireland to have access to a workplace pension scheme. Auto Enrolment is probably the most effective way to get a large body of workers saving towards their retirement. If auto enrolment is introduced, it will go a long way to boosting retirement savings in Ireland.
BrightPay will be exhibiting at Accountex Summit, Stand 33.