A quarter of businesses in Ireland have not yet taken any steps to prepare for the introduction of the government’s pension auto-enrolment scheme, which is due to come into effect on 1 January 2026, according to new research by professional services firm Aon.
The study, based on an analysis of 202 client occupational pension schemes conducted in May, reveals that just 7% of organisations have fully updated their internal systems and legal documentation to accommodate the incoming changes. Even fewer — only 4% — have begun communicating with employees about the scheme’s rollout.
The auto-enrolment initiative, known as My Future Fund, is expected to benefit over 800,000 workers across Ireland. It will apply to all employees aged between 23 and 60 who are not currently in an occupational pension scheme and earn more than €20,000 annually across all employments.
The scheme aims to boost retirement savings among workers, particularly those who currently have no pension coverage. However, Aon’s survey indicates that 85% of organisations are concerned about its introduction, with the most pressing issue being the additional cost burden it will place on employers.
Despite these concerns, many businesses are taking proactive steps. Around 59% of firms have drawn up strategic plans for implementing auto-enrolment, and 62% intend to enrol qualifying employees into their existing occupational pension schemes. This approach is seen as a way to avoid managing two separate pension systems simultaneously.
Caroline Rowan, Head of Retirement Consulting at Aon Ireland, acknowledged the progress made by the majority of organisations but warned of the risks for those lagging behind.
“While it’s encouraging to see many employers mapping out their path to compliance, it is concerning that a significant portion have yet to take action,” Rowan said. “Auto-enrolment will require fundamental changes across payroll, HR, and administrative systems, and businesses that delay risk operational disruption and compliance challenges.”
She urged organisations to begin preparations immediately to ensure a smooth transition before the January 2026 deadline.
The auto-enrolment scheme represents a landmark change in Ireland’s retirement planning landscape, and government officials hope it will close the pension coverage gap, particularly among younger and lower-income workers. However, Aon’s findings suggest that without a significant push over the next 18 months, some businesses may struggle to meet the deadline.
