Auto-enrolment

Auto-enrolment pensions have now officially launched in Ireland, marking a major change in how retirement savings work for employers and employees.

If you are an employer, or a higher-earning employee, it’s important to understand that auto-enrolment is not always the most tax-efficient option — and in many cases, a company pension scheme delivers significantly better outcomes.

We help Irish businesses set up compliant company pension schemes that often outperform auto-enrolment in both tax efficiency and take-home pay impact.

What Is Auto-Enrolment?

Auto-enrolment is a State-run retirement savings system designed to ensure more workers save for retirement. Employees who meet the eligibility criteria are automatically enrolled, with contributions made by:

• The employee

• The employer

• The State

While auto-enrolment improves pension coverage overall, it is designed as a baseline solution, not an optimal one for higher earners.

Higher-Rate Taxpayers: Why Auto-Enrolment May Cost You More

If you pay tax at the higher rate, auto-enrolment is usually less tax-efficient than a company pension.

Key difference:

• Auto-enrolment contributions receive limited State incentives

• Company pension contributions receive full income tax relief at your marginal rate

In simple terms:

Higher-rate taxpayers can lose thousands over time by relying solely on auto-enrolment instead of a properly structured occupational pension.

Company Pension vs Auto-Enrolment – The Key Advantages

✅ Full Tax Relief for Higher Earners

Company pension contributions benefit from full income tax relief, unlike auto-enrolment.

✅ Employer Contributions Are More Efficient

Employer pension contributions are typically tax-deductible and do not attract PRSI or USC in many cases.

✅ Greater Investment Choice

Company pensions allow access to a wider range of funds, risk profiles, and ethical or ESG options.

✅ Higher Contribution Limits

Auto-enrolment has contribution caps. Company pensions allow much higher annual funding, especially for directors and senior staff.

✅ Long-Term Cost Efficiency

Lower charges and better fund selection can result in significantly higher retirement outcomes.

Do Employers Have to Choose Auto-Enrolment?

No.

If an employer already provides a qualifying company pension scheme, they may not need to use auto-enrolment at all, provided the scheme meets the required standards.

This makes company pensions a powerful alternative for:

• SMEs

• Professional firms

• Owner-directors

• Businesses with higher-paid staff

We Set Up Company Pension Schemes for Irish Employers

We specialise in designing and implementing company pension schemes that:

• Meet or exceed auto-enrolment requirements

• Reduce overall tax costs for employers and employees

• Are simple to administer

• Are tailored to your workforce and payroll structure

Whether you are:

• Replacing auto-enrolment

• Reviewing an existing pension

• Setting up a pension for the first time

—we can guide you through the entire process.

Is a Company Pension Right for Your Business?

In many cases, especially where employees pay higher-rate tax, a company pension scheme is clearly superior to auto-enrolment.

We can:

• Compare auto-enrolment vs company pension outcomes

• Quantify tax savings

• Ensure compliance with Irish pension rules

• Handle setup and ongoing support

Get Expert Advice on Auto-Enrolment & Company Pensions

If you’re unsure whether auto-enrolment or a company pension scheme is the right choice for your business, we can help.

For many higher-earning employees and directors, a company pension is significantly more tax-efficient — and we can set it up and manage the entire process for you.

Speak to Us Today

📧 Email: cuffe@cuffeco.ie

📞 Phone: 021 450 0642

💬 Text or WhatsApp: 086 3876 187

Why Talk to Us?

• ✔ Clear comparison of auto-enrolment vs company pensions

• ✔ Identify tax savings for higher-rate taxpayers

• ✔ Employer-friendly pension setup

• ✔ Fully compliant Irish pension advice

• ✔ Straightforward, jargon-free guidance

Whether you’re an employer, company director, or professional firm, we’ll help you choose the most cost-effective and compliant pension solution.

Don’t default into auto-enrolment if a better option exists.
Contact us today and make sure your pension setup is working for you — not against you.