Anne Rabbitte (Fianna Fail)

I welcome the opportunity to speak on the introduction of Ireland's new auto-enrolment retirement savings scheme, a landmark reform that Fianna Fáil in government has helped to deliver and a reform I believe represents a fundamental and long-overdue transformation in how we as a society approach retirement. This is more than a policy announcement; this is about making good on our commitment to protecting workers, promoting fairness and planning responsibly for the future.

Fianna Fáil has always believed that prosperity must be paired with protection and the benefits of economic growth should be felt by all, not just in the here and now but across the course of one's life, including into retirement. This auto-enrolment scheme reflects that principle and ensures that people who work hard all their lives can retire with dignity and financial security, not fear or dependency.

Today, over half of private sector workers in Ireland have no supplementary pension. They rely solely on the State pension and, while that remains a crucial safety net, we know it is not enough to provide for a comfortable retirement on its own. Fianna Fáil has long argued that early and consistent saving is a key to long-term financial resilience but we also recognise that many people, especially younger workers and those in low-paid or precarious jobs, simply do not have the structures or supports to make that happen. That is why the introduction of automatic enrolment is not just a policy initiative, but a social contract that will yield dividends for generations to come. It turns the system on its head, moving from one that relies on people opting in to one where people are automatically enrolled but still retain a choice.

To briefly summarise, from January 2026 employees aged between 23 and 60 earning over €20,000 per annum and not already enrolled in an occupational scheme will automatically be enrolled in a new retirement saving scheme. Contributions will begin modestly at 1% to 1.5% of gross earnings, rising gradually over a ten-year period to 6%. Employers will be required to match these contributions and the State will contribute an additional 33%. Importantly, contributions will be capped at earnings up to €80,000 and individuals will always retain the right to opt out, though the evidence from international best practice suggests most will stay in. The pension pot will follow the worker throughout their career, ensuring continuity, flexibility and security, even as people change jobs and move between sectors. It will be administered by a new body, the National Automatic Enrolment Retirement Savings Authority, which will be tasked with ensuring transparent governance and strong fiduciary oversight.

I will highlight a few of the many positive aspects of this reform. First and foremost, it represents a proactive move towards financial dignity in later life. It shifts pension savings from an optional extra, often only accessed by higher earners, to something routine, normal and accessible to all. Second, the co-funding model is hugely powerful. For every €3 workers put in, they effectively get €3 from their employer and €1 from the State. Third, the gradual phasing-in of contribution rates ensures neither workers nor businesses are hit with an immediate financial burden. It allows for budgeting adjustment and education. Fourth, the design is inclusive. It actively targets those least likely to be covered by a pension: young workers; those in part-time or non-unionised roles; and women, who are underrepresented in the pension system. Fifth, the scheme has the potential to transform our culture around long-term planning. For many people, pensions are complex, intimidating and opaque. Auto-enrolment simplifies that. It meets people where they are at and gently nudges them towards better outcomes.

Let us look ahead to the kind of society we want in 20, 30 or 40 years. It is one where those who have worked all their lives can retire with security and peace of mind, not fear or financial stress; one where the State pension is supplemented, not solely relied upon; and one where the burden on future taxpayers is reduced because we planned ahead.That is the Ireland we are helping to build with this policy. This is the future we are securing, not just for today's workers, but for generations to come. I commend the Minister and the Department on advancing this vital reform and I commend the employers, unions and advocacy groups that have constructively engaged with its development. Fianna Fáil has always stood for pragmatic social progress and the auto-enrolment scheme is a shining example of that approach. It aligns Ireland with best practice internationally, addresses a major gap in our pension infrastructure and empowers working people to build a better future. Let us support it, refine it where necessary and, above all, work together to ensure that it delivers on its promise of a fairer, more inclusive and secure retirement scheme for all.