Ireland’s pension system is evolving rapidly. Auto-enrolment is live as of 1 January 2026, expanding coverage within private sector pensions, while the potential introduction of in-scheme drawdown promises less fragmented retirement journeys. Additionally, the post-IORP II governance landscape will push providers toward scale, transparency, resilience, and member-centric innovation.
With change being the only constant for now, we’ve outlined four steps for employers to take to help navigate the year ahead with confidence:
1. Embed auto-enrolment within your workforce
Auto-enrolment (AE) took effect in Ireland from 1 January 2026, 20 years since auto-enrolment proposals were first published by the Government. Much debate has been had on the design of My Future Fund (opens a new window) (MFF) and the disparity between occupational defined contribution (DC) plans. This has been highlighted by the introduction of new minimum contribution levels (opens a new window) for existing workplace pension schemes, which took effect from 1 January 2026.
Whether employers rely on their own defined contribution DC plan – or a combination of it and MFF – it will be crucial to monitor enrolments to avoid potential penalties and ensure a smooth employee experience. The change made to minimum contribution regulations (and their future direction) will need to be considered relative to employers’ wider employee benefit strategy.
2. Review the effectiveness of your Master Trust
Irish Master Trusts have become the cornerstone of DC pension provision, with assets around €40 billion at the end of 2025 (50% of Irish DC assets), and membership exceeding 750,000 – a scale achieved through regulatory driven consolidation and employer migration. The transposition of IORP II into Irish law in April 2021 elevated expectations from the Pensions Authority, with a focus on trustee fitness and probity, forward looking risk management, and disclosure. Along with the Pension Authority’s increased supervisory powers, this fuelled consolidation and professionalisation. These obligations are now embedded practice and set a high bar for oversight and transparency.
Following the transposition of IORP II, many employers may have relied on their existing pension provider to facilitate the change from a traditional standalone trust to a Master Trust. Given the current scale of the market, ongoing enhancements, and potential increases in membership due to AE, employers should now review their Master Trust to ensure that it continues to provide value for money. As a fully outsourced arrangement, this should be conducted through an employer-led oversight framework.
3. Consider Master Trust feasibility for standalone DC schemes
Many employers continue to operate a standalone DC pension scheme. Following the introduction of AE, trustees of these schemes will likely face increased pressure to demonstrate the scheme’s continued value for money.
In addition, the potential introduction of in-scheme drawdown (ISD) could place further impetus on trustees to review their legal structure, with Master Trusts most likely to have the scale and investment required to manage its implementation. The Pensions Authority’s consultation on in-scheme drawdown (ISD) closed on 20 January 2026. Were it introduced, ISD would allow DC members to remain within their scheme at retirement and draw down benefits under trustee-led governance. It would likely lead to a reshaping of product architecture and advice pathways, with Master Trusts building integrated retirement income solutions.
4. Integrate pensions within your employee benefit proposition
With greater spend and participation, it’s vital for employers to consider how pensions align with their wider employee benefits proposition. Delivering effective employee benefits while securing value is a careful balancing act – with increasing cost pressures and price variation across health insurance, group life insurance, and income protection cover (including the welcomed entry of a new insurer, MetLife). At the same time, employers are showing growing appetite to adopt a holistic wellbeing framework that benefits them and their employees. A forward-looking strategy on rewards and benefits can create tangible dividends on productivity, recognition, and attraction of key talent.
Pensions that prove their worth
For 2026, successful pension providers will be those who execute cleanly, communicate clearly, and prove value – not just in the accumulation phase, but across the full retirement lifecycle. Employers must focus on outcomes, not just compliance. Operational resilience from the providers will be expected, value for money should be demanded, and data should be used to truly personalise the employee experience.
To find out more on how we can support your business in 2026 and beyond, visit our People Solutions (opens a new window) page, or speak to your Lockton consultant.
