Latest news with #My Future Fund
Irish Times
22-07-2025
- Business
- Irish Times
One in four businesses not ready for new pension regime
One in four businesses have yet to take any action to prepare for the introduction of the new mandatory workplace pension scheme which is due to come into force at the start of next year. Over half of the business surveyed by global professional services firm Aon cite cost as their main concern around the introduction of auto-enrolment, which will see around 800,000 workers between the ages of 23 and 60 who are earning more than €20,000 automatically signed up to a pension called My Future Fund. Dominic Coyle has the details. A journalist based in Cork has launched a High Court challenge against the Press Council of Ireland after his website was denied membership of the body earlier this year. JJ O'Donoghue, the founder and editor of local newsletter Tripe+Drisheen, has initiated judicial review proceedings, alleging that the press council failed to give adequate reasons for its decision. Ian Curran reports. READ MORE The average cost of raising a child from birth to the age of 21 was put at almost €170,000 in an eye-watering report in May, a 60 per cent increase since 2015. However, for one cohort of people, the financial challenges around raising a child begin years in advance of shopping for cots or even maternity wear because of infertility issues , writes Fiona Reddan. Dominic Coyle hears from a reader who is the executor of her father's will and has run into problems sorting out his tax affairs with Revenue, including finding his personal claim number and beneficiaries who live abroad. David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 Neither tariffs nor the threat of an EU-US trade war bother Ryanair chief executive, Michael O'Leary , despite the fact that his company is buying up to 329 aircraft from Seattle-based manufacturer Boeing. He is sticking with his view that US president, Donald Trump, will continue to stall their introduction until the two jurisdictions agree a trade deal, writes Cantillon. The focus when the Government publishes its key economic documents on Tuesday will be on where the extra investment resources are going. But, says Cantillon, a key question will be what the additional resources being devoted to projects in housing, water, energy, transport and so on in the revised National Development Plans mean for other parts of the budget. Tesla reports earnings on Wednesday, but does it even matter? The newsflow has been dire for more than a year, writes Proinsias O'Mahony, with Tesla badly missing estimates in three of the past four quarters, yet the stock is up 30 per cent more than that period. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
Irish Times
16-07-2025
- Business
- Irish Times
Businesses support auto-enrolment, department says
The introduction of automatic pension enrolment in January will 'undoubtedly' involve additional costs for businesses, but these will dissipate over time, the Department of Social Protection has said. Only about 35 per cent of private sector workers are currently in pension schemes, which means they would be dependent on the State pension when they retire. In many cases that would result in steep drops in living standards in retirement. To address this, anyone aged 23-60 and earning in excess of €20,000 a year will be automatically enrolled in the new scheme – called My Future Fund – on day one of their employment. It is expected that about 750,000 workers will be enrolled in this way. READ MORE Under the terms of the scheme, employers and employees will each initially contribute 1.5 per cent of gross pay, increasing to 3 per cent after three years, to 4.5 per cent after a further three years, and finally to 6 per cent in year 10 and from then on. Contributions will be made equally by employees and employers with the State providing a top-up of €1 for every €3 saved by an employee. So, in short, every €3 saved by an employee will automatically become €7. Tim Duggan, assistant secretary general with the Department of Social Protection, was before the Oireachtas joint committee on social protection, rural and community development to answer questions on the scheme on Wednesday. While the scheme was broadly welcomed by the committee, a number of members raised concerns about the additional cost for businesses at a time when there is already significant pressure on margins. [ Auto-enrolment needs to be more user-friendly for bosses and workers, recruitment firm says Opens in new window ] Mr Duggan acknowledged there would be a cost, but said the scheme had been designed to ease any pain. 'Undoubtedly, this is an additional cost if you're employing people,' he said. 'However, it has been deliberately designed that instead of introducing the contribution at 6 per cent from the very beginning, it is phased in over a decade to allow employers to adjust budget-wise. 'In most cases, and the experience of other counties has shown, that when you introduce it on a gradual basis like that, it becomes part of the normal remuneration negotiation that goes on between employers and employees on a continual basis.' [ Will starting a pension now exclude daughter from availing of auto-enrolment? Opens in new window ] He said there had been extensive talks with the Irish Business and Employers Confederation (Ibec), the Irish Small and Medium Enterprise Association (Isme), and other business lobbies, and that 'practically all of them' are 'fully supportive' of the scheme. The scheme has been the subject of numerous delays as businesses have readied themselves for its introduction. Mr Duggan insisted it would 'absolutely' be rolled out on January 1st without any further holdups. 'We have made excellent progress in getting everything ready for the launch in January,' he said. Tata Consultancy Services, based in Letterkenny, Co Donegal, has been appointed as a managed service provider of the scheme's administrative services and is currently configuring and testing its systems in line with the scheme's requirements. Three investment managers – Irish Life Investment Managers, Amundi and Blackrock – have been selected for the scheme. Mr Duggan said the department is making 'considerable progress' in staffing and resourcing the new authority, which will be called the National Automatic Enrolment Retirement Savings Authority or NAERSA. The recruitment of a chief executive and of board members are at a 'final stage', he said, while competitions are under way for the senior management positions. The scheme overall will create about 140 jobs in Letterkenny.
