Local employers recently gathered at Scholars Townhouse Hotel for a special briefing on Auto Enrolment, the government’s new mandatory pension scheme set to launch in January.
The event, hosted by Protection & Prosperity Financial Services in conjunction with Drogheda Chamber and Zurich Life, aimed to provide clarity for businesses as they prepare to adapt to the new system.
Auto Enrolment is designed to ensure every eligible employee has access to a workplace pension. Under the scheme, employers will be required to automatically enrol staff into a pension plan and make contributions on their behalf. While employees can opt out, the default will be enrolment — a move intended to encourage long-term retirement savings.
For companies without an existing pension plan, Auto Enrolment will be particularly significant. Employers will need to implement pension schemes for the first time, while those already offering pensions may have to adjust employee benefit packages to ensure compliance with contribution requirements.
Speakers highlighted some of the advantages and challenges of the scheme. Government contributions will provide a boost, particularly for employees on lower tax bands, but Auto Enrolment lacks some of the flexibility of traditional company schemes — such as additional voluntary contributions (AVCs), one-off payments, or direct advisory support.
“Employers need to understand the implications now so they can prepare properly,” the speakers advised, encouraging local businesses to seek guidance in advance of the roll-out.
With Auto Enrolment just months away, the message to Drogheda businesses was clear: prepare early, seek advice, and understand both the opportunities and limitations of the new pension system.
