Media Q&A: Should I hold off starting a pension until auto-enrolment comes in?


Published  06 June 2023
   2 min read

Consumer Question:

I’m in my early 30s. I haven’t yet started a pension. My boss doesn’t offer a company pension scheme so I’m considering setting up my own pension by opening a Personal Retirement Savings Account (PRSA). Should I hold off until auto-enrolment is introduced?


Answer from Mark Reilly, Pension Proposition Lead at Royal London Ireland

It certainly feels like we are getting closer to the implementation of auto-enrolment (AE) retirement in Ireland. The recent publication of the AE Retirement Savings System Bill 2022 is starting to put forward a framework within which AE will operate in Ireland. However, work is continuing on legislation to set up the scheme so it could still be some time before AE gets up and running in Ireland.

The earlier you start saving for a pension, the better. For this reason, it’s worthwhile saving for your retirement by starting a PRSA. You can stop saving into your PRSA if and when AE is introduced, particularly if you are likely to build up a higher pension under AE than through a PRSA. You will not lose the pension benefit you have built up in your PRSA if you stop saving into it – the benefit will remain there until you can access it, which is usually around retirement age. Bear in mind too that while the Government is committed to introducing AE, there is no guarantee that it will go ahead.

To get a PRSA, you must enter into a contract with an authorised PRSA provider. You can get a list of authorised pension providers from the Pensions Authority.

You have a choice between a Standard and a non-Standard PRSA. There is a limit on the charges on your pension with a Standard PRSA. Talking to a Financial Broker can help you choose the right pension product option for you.



This question was submitted to and first published by The Irish Independent


About Royal London Ireland

Royal London Ireland has a history of protecting its policyholders and their families in Ireland, and recently launched a new Pensions business in Ireland. Our business heritage in Ireland is nearly 200 years. The Caledonian Insurance Company's first office outside Edinburgh opened on Dame Street, Dublin 2 in 1824.

Today, Royal London Ireland is owned by The Royal London Mutual Insurance Society Limited – the largest mutual life insurance, pensions, and investment company in the UK, and in the top 25 mutuals globally, with assets under management of €178 billion, 8.6 million policies in force, and 4,100 employees. Figures quoted are as at 30 June 2023.

Royal London Ireland’s office is based at 47-49 St Stephen’s Green, Dublin 2.