Our latest pensions survey has revealed that the majority of pensions professionals (64%) do not believe the State’s plans for auto enrolment in workplace pension schemes will happen as planned in 2024. Ireland is the only OECD country that doesn’t yet operate an auto enrolment system or similar scheme. The new system is designed to simplify the pensions decision for workers and make it easier for employers to offer a workplace pension.
The survey was carried out at our recent webinar, Pensions in Ireland – 2023 & Beyond, which attracted more than 250 industry professionals. The event focused on the future of pensions in Ireland, and what to expect as we near 2023. Watch the playback here.
The survey also found that almost half (45%) of employers will move their occupational pension scheme to a master trust. 14% reported that this has already happened in their organisation, and 31% say it will happen in the next 12 months.
Stephen Gillick, Partner and our Head of Pensions, commented: “Master trusts are set to play an important part in the Irish pensions market going forward. These products are similar to defined contribution schemes and can be utilised by multiple employers that are unrelated to each other. Benefits to a master trust include economy of scale and a reduced regulatory and administrative burden on employers. However, they are more complex to set up than a standard contribution scheme and have had their own problems such as potential conflicts of interest, begging the question: are master trusts a solution, or another problem?”
The event also discussed the recently approved changes to the State Pension system, which retained the State Pension Age as 66 but introduced the option of working until 70 in return for a higher pension.
64% of respondents said they would not consider delaying their retirement to age 70 if the State Pension increased from €253 to €315.