Nearly 5,000 people have opted out of the pension auto-enrolment system in Ireland

Nearly 5,000 people have opted out of the pension auto-enrolment system in Ireland since a two-month period to exit the scheme opened on July 1.

Since the beginning of the year, more than 800,000 people have joined the 'My Future Fund' pension scheme, of which 9,000 have chosen voluntarily. They have saved more than 400 million euros.

The National Automatic Enrollment Retirement Savings Authority, the fund's administrator, said there have been fewer opt-out requests than expected so far.

It added that no participant will be considered "exempt" until the two-day cooling-off period ends.

“4,997 people have opted out, of which 2,404 applied in the first 24 hours,” a NAERSA ​​spokesperson said, adding that a further 1,583 people are now in their cooling-off period. “There has been a significant drop in applications on the second day, and individuals have the option to cancel their opt-out at any point up until the end of their cooling-off period.”

Pension auto-enrollment plan?

For every €3 an employee contributes to the My Future Fund, the employer will contribute €3 and the state will add €1, increasing the partners' retirement savings by €7.

NAERSA ​​said it encourages participants to carefully consider the decision to opt out.

"By opting out, employees will forgo contributions from their employer, currently 1.5% of gross salary, and the payment of state fees, which significantly increases the value of each euro saved over time," the authority said.

A participant who opts out can choose a date within the next 24 months to rejoin or choose to automatically rejoin after two years, if still eligible.

A pensions spokesman for the Irish Congress of Trade Unions said that the opt-out rate was only half of the 1% of participants.

"It was always going to happen that some workers would be laid off," said Dr. Laura Bambrick. "For those who are struggling to keep up with the numbers today, saving for the future is a big need," she added. Others will "move from My Future Fund to company pensions," said Dr. Bambrick.

People are leaving Ireland’s new auto-enrolment pension scheme (My Future Fund) primarily due to immediate cost-of-living pressures, transitioning into superior company pensions, or taking advantage of better tax-relief rules available through private schemes. 

While the vast majority of participants have stayed in the scheme since it launched in January 2026, a small percentage (around half of 1%) chose to leave when the first official two-month opt-out window opened on 1 July 2026. 

The main reasons why workers are opting out include:

💸 Short-Term Financial Pressures

• Balancing the books: Many lower-income workers face tight monthly budgets and prefer having immediate cash in their take-home pay rather than saving for the long-term future. 
• Immediate refunds: Opting out during the July–August window allows workers to get a full refund of all the personal contributions deducted from their payslips over the first six months. 

📈 Better Benefits in Private or Company Pensions

• Higher tax relief: Higher-rate taxpayers (paying 40% income tax) benefit more from traditional private or occupational pensions, which give a 40% tax break on contributions. In contrast, My Future Fund uses a flat government top-up structure (€1 from the State for every €3 you contribute) which equates to a lower 25% tax-relief equivalent. 
• Moving to workplace plans: Some workers opted out because they actively moved into an official company pension scheme that offers superior terms or higher employer matching rates. 

🛑 Restrictions and Lack of Flexibility

• Rigid retirement age: Funds in My Future Fund are strictly locked away until the State retirement age (currently 66). Many private and occupational pension schemes offer the flexibility to retire and draw down benefits as early as age 50 or 55. 
• Limited choice: Some individuals left due to a lack of professional financial advice and the narrow choice of only four basic investment risk funds. 

What Happens Next to Those Who Left?

• Employer contributions lost: Anyone who opts out walks away from "free money," forfeiting the 1.5% gross pay employer match and the State top-up.
• Automatic re-enrolment: Leaving is not permanent. Under the rules governed by NAERSA, anyone who opts out will be automatically re-enrolled after two years if they still meet the eligibility criteria.