A scheme that will see 800,000 private sector workers automatically enrolled in a pension is to be approved by Cabinet today.
Minister for Social Protection Heather Humphreys has set out how she will introduce the long-awaited scheme that will see the workers automatically signed up for a pension.
The scheme will involve the State contributing €1 to every €3 a worker puts into their pension pot, with employers also contributing €3 to match the worker.
Employees who are not enrolled in a pension scheme and are aged between 23 and 60 will be automatically enrolled.
The legislation will include a provision to allow a worker to opt out of the scheme.
Speaking on her way into Cabinet on Wednesday, Ms Humphreys said: “Auto-enrolment has been talked about for decades so I’m delighted to be bringing forward legislation for approval at Cabinet today, which will mean 800,000 private sector workers who currently don’t have a pension scheme will be enrolled into a pension scheme.
“It means that when they retire, there’s going to be a pot there. So they’ll have their own pension scheme on top of the state pension.
“It’s very simple. For every three euros you save, your employer matches the three Euro and the state tops it up with one (euro).”
She added: “Most people find when they retire, that they don’t have any pension provision, there’s a cliff edge drop in their income.
“I want to stop with that. I want to make sure that when they retire, there’s extra money in their pocket. It’s good for society, it’s good for the economy, it’s good for businesses because there’s more money available to spend.”
Tánaiste Micheál Martin said: “I think that (the scheme) is evidence of the Government looking more long-term in many of our decisions.”
