Should I Opt Out of Auto-Enrolment?

The short answer: almost certainly not. Opting out means walking away from free money. Here’s the full picture.

Why You Should Stay In

1. Free Money From Your Employer

Your employer is legally required to match your contribution. That’s an immediate 100% return on your money before any investment growth. No savings account, no investment, no side hustle gives you a guaranteed instant double.

By 2034, that’s 6% from you and 6% from your employer — effectively a 12% pay rise that goes straight to your future self.

2. The State Tops You Up By 25%

On top of the employer match, the Government adds €1 for every €3 you contribute. That’s an extra 33 cent on every euro — or a 25% top-up on your total contribution. This is paid regardless of your income or tax band.

For lower earners (those on the 20% tax band), this is actually better than traditional pension tax relief, which only gives 20% back.

3. Compound Growth Over Decades

Money invested in your 20s or 30s has decades to compound. Even modest annual returns (say 5-6%) turn small monthly contributions into a substantial retirement fund. Every year you delay costs you disproportionately.

Example: €100/month from age 25 at 5% growth = ~€150,000 by age 65. Start at 35 and you get roughly half that.

4. Rock-Bottom Fees

MyFutureFund charges just 0.10% per year — about ten times cheaper than most private pension funds in Ireland. Low fees mean more of your money actually stays invested and working for you.

5. You Won’t Miss What You Never Had

Contributions are deducted at source — before the money hits your bank account. Most people adjust within a month or two and never notice the difference. Your future self will thank you.

The Very Few Cases Where Opting Out Might Make Sense

We’re talking about extreme situations only:

Crippling, high-interest debt — if you have debt at 15%+ interest (credit cards, moneylenders) and literally cannot meet minimum repayments, clearing that debt first may make mathematical sense. But even here, consider that the employer match + state top-up effectively gives you a 133% instant return.
Genuine short-term financial crisis— if you’re about to be evicted or can’t feed your family, short-term survival takes priority. But you’ll be re-enrolled automatically, so it’s a temporary pause, not a permanent exit.

“I’d rather invest myself” or “I don’t trust pensions” are NOT good reasons. You cannot replicate the employer match and state top-up on your own.

How to Opt Out (If You Insist)

The opt-out window is months 7 and 8 after your enrolment date. You cannot opt out before month 7 or after month 8 — the window is deliberately narrow to encourage people to stay.

Wait until the opt-out window opens (you’ll be notified by NAERSA — the National Automatic Enrolment Retirement Savings Authority).
Submit your opt-out request through the official MyFutureFund portal or via your employer.
Your contributions will stop and any money already contributed will be refunded to you and your employer. The state top-up is returned to the Government.

Note:You cannot opt out during your first 6 months. This “cooling in” period lets you see the contributions in action before making a decision.

What Happens After You Opt Out?

Opting out is not permanent. Here’s what happens:

You’ll be automatically re-enrolled every 2 years. Each time, you can opt out again during the same months 7-8 window.
You can also opt back in voluntarilyat any time — you don’t have to wait for the 2-year cycle.
Your employer cannot penalise you for opting out (or for staying in). It’s a legal protection.

The system is designed this way because research shows most people who opt out later regret it. Automatic re-enrolment gives you a regular chance to change your mind.

See What You’d Be Giving Up

Use our calculator to see exactly how much your pension could be worth — including the employer match and state top-up you’d lose by opting out.

Try the Calculator →