Blog
2nd June, 2026
Changes to the Irish Pensions Landscape in 2026
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Ireland’s pension landscape is currently undergoing major changes in 2026. From the launch of Auto-enrolment “My Future Fund” to increases to the Standard Fund Threshold (SFT). This blog provides a complete breakdown of key pension developments in 2026 and what are still yet to come.
Increase in State Pension
This January 2026, the State Pension (Contributory) personal full rate increased by €10 per week, bringing it to €299.30. This change aims to help pensioners cope with the rising cost of living.
You can choose a date between age 66 and 70 to access any State Pension (Contributory) entitlement you may have. A higher rate of State Pension (Contributory) is payable to those accessing State Pension (Contributory) between ages 67 and 70.
Total Contributions Approach (TCA)
The new TCA will affect how individuals qualify for the State Pension, focusing on the total number of contributions made over a working life. This change aims to simplify the pension qualification process.
If you are claiming State Pension (Contributory) from 2025, there will be a change in how the rate of State Pension (Contributory) is calculated.
This is in line with the 10-year phased removal of the yearly average calculation method, so that all pensions will be calculated using only the Total Contributions Approach (TCA) by 2034.
These changes reflect the government's efforts to enhance the pension system, making it more accessible and beneficial for employees and retirees. It is essential for individuals to stay informed about these updates to effectively plan for their retirement.
Introduction of Auto-Enrolment
The new auto-enrolment pension scheme, branded as My Future Fund, launched on 1st January 2026. This scheme has automatically enrolled 763,000 employees from 104,000 employers into the pension plan, with contributions from employees (1.5% x salary), employers (1.5% x salary), and the government (0.5% x salary). €60 million of contributions has already been invested with the 3 contracted investment managers. Contributions will increase in 3 year phases reaching (EE 6% x salary, ER 6% x salary, Gov 2%) 14% by Year 10.
Changes to Employer Contributions
From January 2025, employers are restricted to contributing a maximum of 100% of an employee’s salary to a Personal Retirement Savings Account (PRSA). Contributions exceeding this limit will be treated as a Benefit in Kind (BIK) and taxed as part of the employee’s income.
Standard Fund Threshold
The SFT, which caps the lifetime amount of tax-relieved pension savings, will gradually increase over the coming years. The legislative link between the SFT and the maximum 25% retirement lump sum €500,000 will no longer apply, allowing for more flexibility in pension savings.
Updated Schedule
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Pension Scheme Consolidation
The Pension Authority is encouraging the consolidation of pension schemes, especially for one‑member and small Defined Contribution (DC) schemes. This development is in light of the exemption from the provisions of IORP II for one‑member schemes, or ‘OMAs’, which expired on 22nd April 2026.
There has been a 48% reduction in the number of Group DC schemes between Jan 2023 and Sept 2025 as well as a 36% reduction in OMAs between January 2023 and September 2025.
Master Trusts
There are currently 17 master trusts established in Ireland – 12 of these are group scheme arrangements and 5 are retail for OMAs. Master trusts are playing a bigger role in pension scheme consolidation in Ireland. Between June 2023 and June 2025, assets under management rose from €13.9 billion to €35.2 billion, while the number of participating employers increased from 15,000 to 30,000. As a result of this growth, the Minister for Social Protection indicated earlier this year that his department is working with the Pensions Authority to develop proposals to provide for an enhanced legal underpinning for a master trust regime in Ireland.
PRSAs
The assets held in PRSAs have increased from €9 billion in Q1 2023 to €20 billion in Q2 2025, demonstrating consumer confidence in this form of retirement planning has risen and signalling continued growth for 2026.
Master Trust Occupational Schemes V PRSAs in 2026
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The right pension scheme approach depends on a client’s circumstances such as age, shareholding, retirement plans and tax position.
Still to Come
The Pensions Authority will be introducing a new scheme authorisation process.
Awaiting findings from the Pensions Authority consultation on investment restriction rules under IORP II being applied to PRSAs. Indications appear to imply no immediate changes in short term and feedback still being reviewed.
Legislation to provide for enhanced legal underpinning of master trust regimes will be forthcoming. The Minister for social protection has stated that this is likely to involve “introducing obligations on master trust trustees over and above those required of single employer schemes”.
More EU legislation and requirements are in place too, i.e. DORA, ESAP, and the review of IORPs and PEPP ongoing.
Upcoming consultations on ARFs and in-scheme drawdowns facilities are ongoing and likely to be implemented.
A continuing focus by the Pensions Authority on its supervisory role is ongoing, which could mean further examination of master trusts schemes and compliance restrictions. However I believe with the current pace of change in 2026, a deep breath would be welcome by all parties.
John McGovern, ITC Business Development Manager