How an auto-enrolment savings system is likely to affect the pension gap when implemented in Ireland?

Abstract

The population are living longer, and policymakers are redesigning their pension system to tackle the increasing pension’s gap that has emerged across all major economies. The Irish government is due to implement the State Pension, by introducing a nation-wide automatic-enrolment savings system proposed to commence in 2022, with the objective to increase the pension’s coverage amongst workers from the private sector. The aim of this research study was to discover how an automatic-enrolment system is likely to affect the pension gap in Ireland. Secondary data was used to present outcomes and experiences from two OECD countries that implemented the auto-enrolment system in previous years to explore what the expectations for Ireland are. In order to achieve the aim of this dissertation, a qualitative research design was adopted with semi-structured interviews and a Grounded Theory method. The findings suggest that despite the auto-enrolment to be a good step, it would not solve the Irish pension problem considering the low level of contribution it will impose; it would not considerably impact the pension gap.