More than 760,000 workers who are eligible for auto-enrolment will see an average of \u20ac15 per week deducted from their take-home.<\/p>\n
A worker on an average wage of \u20ac52,200 will see about \u20ac15 a week deducted from their pay to fund the new My Future Fund pension.<\/p>\n
Over a year, this amounts to around \u20ac783 from take-home pay, according to calculations by insurance broker and financial services specialist Gallagher.<\/p>\n
The worker contribution will be boosted by a similar payment from their employer.<\/p>\n
The State contributes \u20ac1 for every \u20ac3 put in by the employee.<\/p>\n
The advice comes as it emerged that more than 5,000 employees have opted to voluntarily enrol into the new My Future Fund pension in its first month.<\/p>\n
These employees are outside the age and income criteria for automatic enrolment.<\/p>\n
Every worker earning more than \u20ac20,000, aged between 23 and 60 and not already a member of a workplace pension scheme, will be automatically enrolled in My Future Fund.<\/p>\n
Workers who are taken aback by the deduction from their pay packet have been advised to avoid knee-jerk reactions that might see them lose out on the benefits of the scheme.<\/p>\n
Gallagher reminded workers who feel they cannot afford the contributions to My Future Fund that they can still opt out of the scheme if they wish.<\/p>\n
But it said any decision to do so should not be taken lightly.<\/p>\n
Financial services spokesperson for Gallagher Teresa Bruen said: \u201cFor many of the 760,000 workers signed up to auto-enrolment this month, this could be the first time they have ever saved into a pension.<\/p>\n
\u201cThe initial employee contributions \u2013 at 1.5pc of gross salary \u2013 are relatively small. At that rate, a worker on the average wage of \u20ac52,19 will see about \u20ac783 deducted from their annual pay, or about \u20ac15 a week.\u201d<\/p>\n
She said that some workers, particularly those on a low wage, may feel that they simply cannot afford to pay into the new scheme.<\/p>\n
However, for those workers, My Future Fund could be their only opportunity to save into a pension scheme and to build up a pension pot for their retirement years, Ms Bruen said.<\/p>\n
She said for these workers the scheme is likely to prove most valuable.<\/p>\n
\u201cFurthermore, they will get the benefit of matching employer contributions and a top-up contribution from the state at a rate of \u20ac1 for every \u20ac3 paid in.\u201d<\/p>\n
For part-time workers, auto-enrolment could prove invaluable, she said.<\/p>\n
Part-time workers who are not already paying into a company pension scheme and don\u2019t earn enough to be automatically enrolled can voluntarily opt-in to the scheme.<\/p>\n
Gallagher said employees will be able to opt-out of the scheme during the opt-out window which is between six months and eight months of the date they were automatically enrolled.<\/p>\n
In availing of the opt-out window, employees will be refunded their own contributions since enrolment but the employer or state contributions will remain for their benefit in the fund.<\/p>\n
If employees leave the plan or suspend contributions, they will be automatically re-enrolled after two years if still eligible for the scheme.<\/p>\n","protected":false},"excerpt":{"rendered":"More than 760,000 workers who are eligible for auto-enrolment will see an average of \u20ac15 per week deducted…\n","protected":false},"author":2,"featured_media":262578,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[114,16767,268,85,46,16768,266,267],"class_list":{"0":"post-262577","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-charlie-weston","10":"tag-finance","11":"tag-il","12":"tag-israel","13":"tag-money-experts","14":"tag-personal-finance","15":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/262577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=262577"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/262577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/262578"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=262577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=262577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=262577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}