Employees make the call on My Future Fund

The first wave of My Future Fund opt-outs has begun. Leeanne Connolly explores what the next phase of My Future Fund means for employers and their workforce

As of 1 July 2026, hundreds of thousands of employees in Ireland can now opt out of My Future Fund, the State-sponsored pension auto-enrolment scheme.

It has been reported that 5,000 people opted out in the first week alone. For employers, it is important to understand what this means for both your business and your employees.

 What is My Future Fund?

Ireland’s new pension auto-enrolment scheme, also known as My Future Fund, was introduced by the Irish Government to improve overall access to workplace pensions for employees in Ireland.

The State-run scheme, which launched on 1 January 2026, applies to all employees between the ages of 23 and 60 who earn over €20,000 per year and are not yet enrolled in any occupational private pension scheme.

When the scheme came into effect in January, about 750,000 people were automatically enrolled and another 9,000 voluntarily opted in.

Under My Future Fund, an employee’s retirement savings scheme is made up of employee contributions, employer contributions and an additional top-up from the State.

Opt out and suspension options

After six months of enrolment in the scheme, employees can choose to opt out or suspend contributions. For many, this six-month point has now been reached.

There is a two-month window (between months seven and eight) during which the employee can opt out or, alternatively, suspend their participation.

Opting out will halt contributions to the pension fund and grant the employee a refund of their contributions up to that point.

Suspending participation, on the other hand, simply means that all contributions into the fund will be stopped for at least 12 months. Employees may choose to re-enrol after suspending or opting out, provided they are still eligible.

If the employee has not re-enrolled after two years and remains eligible, they will be automatically re-enrolled into the scheme.

Staying compliant

As a business owner, it is important to track which of your employees currently enrolled in My Future Fund are now eligible to opt out, and identify those that have already done so.

Employers should conduct regular payroll audits to ensure everything is set up correctly, and HR documentation should be reviewed and updated whenever an employee’s pension status changes.

While early opt-out figures have attracted attention, it is too soon to draw firm conclusions about long-term participation in My Future Fund.

For employers, the priority should remain ensuring compliance with the schedule’s requirements while helping employees understand the options available to them and the implications of any decisions they make.

As more employees reach the point at which they choose to can opt out or suspend their participation in My Future Fund, clear communication, accurate financial processes and good record-keeping will be essential to managing the scheme effectively.

At all stages, employees should be supported in making informed choices about their pension.

Leeanne Connolly is Head of Employment Services at Peninsula Ireland