Relocating for work isn't just about your current salary; it's about your long-term financial security. Both the UK and Ireland have established mandatory pension systems to ensure workers save for retirement. However, 2026 is a landmark year for Ireland with the official rollout of its first-ever auto-enrolment scheme. At Recruitroo, we ensure our candidates understand these deductions so there are no surprises on their payslips.
Ireland’s New "My Future Fund" (2026)
As of 1 January 2026, Ireland has introduced "My Future Fund," a state-led auto-enrolment system. If you are aged between 23 and 60, earn over €20,000, and are not already in a company pension scheme, you will be automatically enrolled. The system is designed to supplement the State Pension, creating a more robust "second pillar" of income for your later years.
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Matching Contributions: For every €3 you contribute, your employer adds €3, and the State adds €1. This "€3-€3-€1" model provides an immediate 133% return on your investment.
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Phased Rates: In 2026, the contribution rate starts at 1.5% of your gross salary (capped at €80,000). This will gradually increase every three years until it reaches 6% in year ten.
The UK Workplace Pension System
The UK’s auto-enrolment system is well-established but equally important for international hires to understand:
- Eligibility: You are automatically enrolled if you are aged 22 to the State Pension age and earn over £10,000 per year.
- Standard Rates: The "total minimum contribution" is usually 8% of your qualifying earnings. Typically, you pay 5% and your employer pays 3%.
- Tax Relief: Unlike the Irish state top-up, the UK system provides tax relief on your contributions, meaning some of the money that would have gone to the government as income tax goes into your pension pot instead.
Opting Out vs. Staying In
In both countries, you have the right to "opt out" if you prefer to manage your savings elsewhere or need the cash flow immediately. However, we generally advise against this. By opting out, you lose the "free money" provided by your employer’s matching contribution. If you leave the UK or Ireland, you can often "freeze" your pot until retirement or, in some cases, transfer the funds to a recognized scheme in your home country.
Relocation Advice: "If you plan to stay in the UK or Ireland for more than two years, the pension contribution is one of the best financial moves you can make. It’s essentially a deferred pay rise that you can take with you, regardless of where you eventually retire." — Emma Fitzgerald, Relocation Advisor.
How Recruitroo Helps
Recruitroo’s platform automatically accounts for these pension deductions in your net-pay estimations. We also provide "Financial Onboarding" sessions for our hires, explaining how to access your pension portal, track your savings, and choose investment funds that align with your ethical or financial goals. We make sure you aren't just working for today, but building for tomorrow.
Ready to plan your financial future? Book a demo to see our net-pay tools. Candidates can view roles with competitive pension benefits at Recruitroo.com/candidates or visit Recruitroo.com.