Paying into a pension will happen automatically from 2024.
The government has announced a new pension plan for those earning more than €20,000 a year.
It'll start from 2024 onwards, and people will be allowed to opt out of the scheme after enrolling.
The pension rate begins at 1.5 per cent of an employee's wage and goes up to 6 per cent after ten years.
Employers will legally have to match the payments into the pension.
The State will also top up the fund under the new scheme.
Employees will have €4 paid into their pension for every €3 they contribute, under a new auto-enrollment scheme.https://t.co/urnWEB6sqJ
— NewstalkFM (@NewstalkFM) March 29, 2022
It's set to cost the State 2.8 billion euro to roll out the automatic pension scheme.
750 thousand people who don't currently have a pension will be automatically signed up in 2024.
Social Protection Minister Heather Humphreys says this will be above and beyond the state pension.
"The State pension is and will remain the bedrock of the Irish pension system," she said.
"We do know that people are living longer and have higher expectations for their retirement."
