The Managing Director of Financial Planning and Pension Consultancy firm Provest, Mark O'Sullivan, has sought answers on whether the new Auto Enrolment System for pensions will be delivered on time. Although there is concern about delays, O'Sullivan recognises the positive impact for workers in Ireland.
Cork City, Ireland - June 6, 2023 —
Mark O’Sullivan, Managing Director of Provest, a Financial Planning and Pension Consultancy Firm based in Cork, has urged the Minister Heather Humphreys and the Department of Social Protection to provide clarity as to whether the new Auto Enrolment System will be delivered on time for 1st January 2024.
Under the plan, in the region of 750,000 workers will be automatically enrolled in a pension scheme, with the State adding a top-up of €1 for every €3 put in by workers. This number consists of those who don’t currently contribute to a Pension Scheme, who are aged 23 to 60, and who earn over €20,000.
There have been concerns that there will be further delays in putting the Scheme in place. “With only seven months to go until the proposed start date, employers need time to prepare for auto enrolment,” said O’Sullivan.
He added, “Currently, the Government plans to phase in the contribution rates over several years. Under the proposed plan, employers and employees will each have to initially contribute 1.5% of an employee’s salary to the auto enrolment scheme.”
“We are in the midst of a cost-of-living crisis, employers and employees need clarity and guidance, so they can make provision for these contributions. Additionally, the scheme will carry an administrative and payroll burden which could be a potential headache for many small employers.”
A key feature of the system is that participation in the new scheme will be voluntary, however. Workers will have the ability to opt out if they do not wish to participate. There will be options to leave the scheme, or contributions can be paused in the event of job loss. It is understood the fund will also offer investments at different levels of risk.
“Auto enrolment will be hugely positive for workers in Ireland, particularly those who at retirement would be solely reliant on the state pension to fund their lifestyle. It will create far greater financial security across society,” said O’Sullivan.
Mark O’Sullivan is the Managing Director at the financial services firm Provest. Provest is a Financial Planning and Pension Consultancy firm based in Cork City, offering personalised financial advice and high-quality customer service to those looking towards their retirement. The company manages and advises private and corporate clients on a range of items from pensions to investments and retirement planning.
Find out more about Provest on the company website: https://www.provest.ie. For press enquiries, please contact Baldwin Digital by calling 021 201 8302, emailing info@baldwindigital.ie or writing to Suite 105, Commerce House, 14 Washington Street West, Cork City, Ireland T12 NCF2.
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Organization: Provest
Address: Suite 105, Commerce House, 14 Washington Street West, Cork City, Ireland T12 NCF2
Phone: 021 201 8302
Website: https://www.provest.ie
Release ID: 89099362
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