Only 47% of Irish workers are saving for their pension and coverage is even lower for private sector workers. There has been consensus for several years that in order to effectively increase pension coverage, Ireland should introduce automatic enrolment which has been tried and tested around the world.
After the hurdles that have been faced over the recent years, we are pleased to see the auto-enrolment plans set out in the 2019 consultation documents, finally moving forward. However, a 2024 date for the first employee contributions is an ambitious deadline for the build of the new system. One key challenge is the design of the investment options, including the default investment strategy. We believe having a robust default investment strategy which is suitable for the majority of members is central to the success of auto-enrolment and ultimately for delivering good outcomes to savers.
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