Four in five Irish workers are still not aware of the details of the incoming compulsory workplace pension regime just six months out from the launch date, according to a survey carried out by US investment giant BlackRock.
BlackRock is understood to be among asset managers lining up a bid to manage part of the so-called auto-enrolment pension pot. The scheme will capture up to 800,000 workers between the ages of 23 and 60 and earning more than €20,000 who are not currently part of a pension plan, at the end of September.
BlackRock’s 2025 Ireland Read on Retirement report also said that only 41 per cent of Irish workers feel they are on track for a reasonable standard of living on retirement. This falls to 26 per cent across individuals that do not have a defined contribution (DC) workplace pension.
“As we approach the introduction of auto-enrolment in the Republic of Ireland it is crucial that we address the gaps in awareness and understanding to ensure that all workers can benefit from this pivotal step forward,” said Tim Hodgson, of BlackRock’s UK & Ireland DC Platforms and Retirement Solutions.
“Irish workers face similar challenges to those encountered by retirement savers around the world. The introduction of auto-enrolment later this year is a once-in-a-generation opportunity to help individuals set themselves up for a comfortable retirement.”
The Department of Social Protection launched a long-delayed official search for three companies to manage the investment of contributions that will be made by employers, employees and the State into the auto-enrolment pot. Each will have to provide fund options of low, medium and high risk. Investment managers interested in the business have until April 7th to pitch for it.
BlackRock is expected to compete alongside Amundi, Irish Life’s investment management arm, State Street Global Advisors and others for one of the three contracts.
The “request for tender” document says that there may be €21 billion in assets under management in the My Future Fund – the name given to the auto-enrolment scheme – within 10 years.
The document, filed on the Government’s eTenders website, sets a cap on any all-inclusive annual management charge of 0.1 per cent of the assets under management.
Under auto-enrolment employers and employees will both contribute 1.5 per cent of their gross earnings to it initially, with the State adding a further 0.5 per cent. The contributions of all parties will gradually increase, reaching 6 per cent and 2 per cent respectively by 2034.
The BlackRock survey results reflect an international trend of poor retirement readiness. BlackRock’s UK Read on Retirement published in 2024 found that nearly three-quarters of UK DC pension savers feel they are not on track to achieve a reasonable standard of living in retirement while 60 per cent of workers who participated in a US study said they feared outliving their retirement savings.
