The Cabinet has approved the details of a new pension auto-enrolment scheme as a date for its arrival has been confirmed.
Around 750,000 workers in Ireland will benefit from the new private pension scheme which Minister for Social Protection Heather Humphreys says will arrive in 2024.
It will see workers earn a further €4 for every €3 saved to their pension account. When the scheme is fully established, a worker earning €35,000 each year will accumulate a fund of around €293,000 before retirement.
READ MORE: Who will be eligible for new pension scheme as over 750,000 workers to benefit?
All employees who are not already in an occupational pension scheme, are aged between 23 and 60 and who are earning over €20,000 across all of their employment will be automatically enrolled.
However, participation will be voluntary, so anyone that does not want to continue their participation can ‘opt-out’ - rather than having an ‘opt-in’ basis.
Those who choose to remain in the system will then have their pension savings matched on a one-for-one basis by their employer.
The State will also provide a top-up of €1 for every €3 saved by the worker according to details published back in March - meaning that for every €3 saved, a further €4 will be invested by the employer and the State combined.
The bill will now go before the Oireachtas Committee on Social Protection for Pre-Legislative inspection before its expected introduction in early 2024.
Minister for Social Protection Heather Humphreys said it was a historic milestone in the journey towards enabling thousands more people to save for their retirement.
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