Ollie Crowe (Fianna Fail)

I thank the Minister, Deputy Calleary, for joining us this evening. I welcome the introduction of the My Future Fund scheme. First, it addresses a growing problem that affects many workers in Ireland, namely, the lack of retirement savings. For years, a traditional State payment has been the main source of income for people when they stop working, but the truth is the State pension alone often does not provide enough to live comfortably. As life expectancy increases and the cost of living continues to rise, many people find themselves unprepared for retirement. This new scheme will help to fill that gap by encouraging people to save for their own future in addition to what they get from the State.

As the Minister outlined, the key feature of the pension auto-enrolment scheme is that it automatically enrols workers in a pension plan if they meet certain criteria. This means that people will start saving for their retirement without needing to take action. It is a simple, hassle-free way to make sure that everyone who is eligible is on track to build up a pension pot. This is especially important because research shows that many people simply do not get around to setting up a pension plan on their own, often putting it off until it is too late.

Another positive aspect of the scheme is that it is a shared responsibility. Both the employer and employee contribute to the pension and the State makes a contribution.This means that employees do not have to bear the full burden of saving for retirement on their own. It also takes some of the pressure off employers who have long been concerned about their role in helping employees to save for retirement. This collective approach is a win-win for everyone involved. Importantly, the scheme gives workers the option to opt out, but the reality is that most workers will likely stay in because the benefits far outweigh the downsides. Also, as time goes on, the contribution rates will increase gradually, making it easier for workers to adjust without feeling overwhelmed.

I have a couple of brief questions. In regard to the self-employed, will the Minister expand on other options that would be available for them? It is important at some stage to introduce them to the scheme. I know it cannot be done in the first instance. Also, I notice there is a management fee of 0.5%. Over time, that will be a hugely significant amount of money. For example, in the UK, the national employment savings trust has a maximum management fee of 0.3%. Will the Minister also share his views on that?