MyFutureFund vs a private pension in Ireland: how auto-enrolment compares

MyFutureFund changes a very old Irish pension problem: many employees reached mid-career without any private pension at all.

The new system gives eligible employees a retirement account automatically, requires the employer to contribute alongside them and adds a State top-up. That makes the basic proposition easy to understand.

The harder question is what happens when you compare it with a PRSA or an occupational pension.

They are not simply three versions of the same account. They differ in how contributions are set, how the State supports saving, how much flexibility you have, when you can normally access the money and what an employer may add.

This article compares the structures. It does not tell you which pension to choose.

The short version

If you are enrolled in MyFutureFund in 2026:

• you contribute 1.5% of gross pay;
• your employer contributes 1.5%;
• the State contributes 0.5%;
• the contribution percentages rise in stages to 6%, 6% and 2% from 2035;
• employee contributions are deducted from net pay rather than receiving ordinary pension tax relief;
• contributions stop once the annual MyFutureFund earnings threshold is reached, currently €80,000 across enrolled employments;
• you cannot currently make additional voluntary contributions to MyFutureFund;
• the fund is normally locked until State Pension age, currently 66.

A PRSA or occupational pension can work differently:

• employee contributions may qualify for Income Tax relief at your marginal rate, subject to Revenue limits;
• contribution levels are not tied to the MyFutureFund schedule;
• an employer may contribute, depending on the arrangement;
• retirement access can be earlier than MyFutureFund in many cases;
• investment choice, charges and additional benefits vary by scheme or provider.

The biggest mistake is therefore comparing only the percentage coming out of your payslip.

First: what exactly are we comparing?

MyFutureFund

MyFutureFund is Ireland’s auto-enrolment retirement savings system.

Employees who meet the qualifying conditions are automatically enrolled where the relevant employment is not already covered by a qualifying payroll pension arrangement.

The current MyFutureFund guide says automatic enrolment generally applies where you are:

• aged 23 to 59;
• earning at least €20,000 a year across employments, subject to the scheme’s payroll tests; and
• not already making qualifying pension contributions through payroll for that employment.

Employees outside those age or income limits may be able to opt in in specified circumstances. Self-employed people cannot currently opt in.

Check the current MyFutureFund rules.

Occupational pension

An occupational pension scheme is established by an employer.

The rules can vary significantly. One employer may provide a strong contribution, death-in-service cover and other benefits; another may provide a much more basic defined-contribution arrangement.

Revenue states that occupational schemes must have a normal retirement age between 60 and 70, although scheme rules can allow earlier retirement in some circumstances.

Revenue: occupational pension schemes.

PRSA

A Personal Retirement Savings Account is an individual pension contract with an authorised provider.

It is not tied permanently to one job. Revenue notes that a PRSA can continue when you change employment, and both the individual and employer can contribute.

A PRSA can usually be accessed from age 60, with certain earlier-retirement provisions in limited circumstances.

Revenue: PRSAs.

So when someone says “private pension”, they may mean an occupational pension, a PRSA or another pension product. Those distinctions matter.

How the MyFutureFund contributions work

The contribution schedule is fixed.

Period	Employee	Employer	State	Total before investment returns
2026–2028	1.5%	1.5%	0.5%	3.5%
2029–2031	3%	3%	1%	7%
2032–2034	4.5%	4.5%	1.5%	10.5%
2035 onward	6%	6%	2%	14%

Source: MyFutureFund participant guide.

Your employer matches your employee contribution. The State then adds €1 for every €3 you contribute.

MyFutureFund describes that State contribution as equivalent to 25% traditional tax relief.

That phrase needs context.

Under MyFutureFund, your own contribution is deducted from net pay. You do not separately receive the usual Income Tax relief on that employee contribution.

The State top-up is the alternative support mechanism.

Worked example: €40,000 salary in 2026

For someone whose full €40,000 salary is contributionable under MyFutureFund:

2026 contribution	Annual amount
Employee: 1.5%	€600
Employer: 1.5%	€600
State: 0.5%	€200
Total added to retirement savings	€1,400

The employee has €600 deducted from net pay, while €1,400 in total is directed to the retirement account before investment returns or fees.

Try your own salary in the MyFutureFund Calculator.

That employer contribution is central to the comparison. It is not enough to compare the employee’s €600 with a €600 PRSA contribution and stop there.

What if the same person used a PRSA?

A PRSA contribution can qualify for Income Tax relief at the individual’s marginal rate, within Revenue’s limits.

Revenue’s age-related limits for employee pension contributions are currently:

Age	Maximum percentage of relevant earnings eligible for Income Tax relief
Under 30	15%
30–39	20%
40–49	25%
50–54	30%
55–59	35%
60+	40%

The earnings figure used for this relief is capped at €115,000 a year.

Source: Revenue pension tax-relief limits.

The relief applies to Income Tax, not USC or PRSI on employee contributions.

For example, if a person who pays Income Tax at 40% makes a qualifying €1,000 personal pension contribution, the Income Tax relief may reduce the effective after-tax cost by €400, assuming the contribution is within their applicable limits.

Someone receiving relief at 20% would receive a different result.

That is why a private pension’s tax treatment cannot be reduced to one universal percentage.

You can model the tax-relief side separately with the Pension Tax Relief Calculator.

The employer contribution can change the whole comparison

This is one of the most important distinctions.

MyFutureFund requires the employer contribution for an enrolled employee.

A PRSA can receive employer contributions, but the fact that an employer has given you access to a PRSA does not automatically mean the employer contributes to it.

The Pensions Authority states that employers who do not provide an occupational pension must in certain circumstances provide access to a standard PRSA, but there is no general rule requiring the employer to make a contribution simply because that PRSA exists.

An occupational scheme can be very different again. Some employers make substantial contributions or offer matching structures.

So a useful comparison is not:

MyFutureFund versus PRSA.

It is:

MyFutureFund versus the exact pension arrangement my employer is actually offering me.

You need to know the employer percentage, the employee requirement, fees, investment options and any other benefits.

A €60,000 example shows why marginal tax rate matters

In 2026, MyFutureFund contributions on €60,000 would be:

• employee: €900;
• employer: €900;
• State: €300;
• total: €2,100.

The employee’s €900 is deducted from net pay.

Now imagine instead that the employee contributes €900 to a private pension and the contribution qualifies for 40% Income Tax relief.

The €900 pension contribution could have an after-Income-Tax cost of approximately €540, before considering any employer contribution and without any USC or PRSI relief.

But that does not prove the private pension is better.

If the employer contributes nothing to the private arrangement, only €900 has gone into the pension. Under the MyFutureFund illustration, €2,100 has entered the retirement pot because the employer and State have added money.

If the employer offers a strong occupational pension contribution, the comparison could look very different again.

The result depends on the complete package.

MyFutureFund is deliberately less flexible on contributions

MyFutureFund contribution rates are fixed.

The participant guide says that you and your employer cannot currently choose to pay more or less than the scheduled percentage and additional voluntary contributions are not currently permitted.

That simplicity is a feature for someone who might otherwise save nothing.

It is also a limitation for someone who wants to make much larger pension contributions.

A private pension can offer more scope for personal contributions, subject to product rules and Revenue tax-relief limits.

This becomes increasingly relevant for people trying to catch up later in their career.

MyFutureFund currently stops contributions above its earnings threshold

MyFutureFund currently applies its contributions up to an annual gross-pay threshold of €80,000 across enrolled employments.

Once the threshold is reached under the scheme’s payroll rules, further earnings for that year generally do not attract MyFutureFund contributions.

Private-pension tax relief uses a different framework: Revenue currently limits the earnings used in calculating employee pension tax relief to €115,000, together with the relevant age-related percentage.

The two thresholds therefore perform different jobs and should not be treated as interchangeable.

When can you access the money?

This is a significant structural difference.

MyFutureFund

MyFutureFund is linked to State Pension age, currently 66.

The participant guide states that the fund generally cannot be accessed before then, except for specified ill-health retirement circumstances.

In the early years of the system, the expected retirement payout is a lump-sum drawdown structure, with the scheme intending to develop more retirement products over time.

PRSA

The Pensions Authority states that PRSA benefits can normally be taken from age 60.

There are also circumstances in which benefits may be available earlier, such as retirement from employment from age 50 or serious ill-health, subject to the applicable rules.

Occupational pension

The normal retirement age is set by the scheme, generally between 60 and 70, with 65 common. Some schemes allow earlier retirement under their rules.

The relevant question is therefore not simply “when do pensions start?”

It is:

When can I access this particular pension arrangement, under its current rules?

Investment choice: simpler does not mean no choice

MyFutureFund automatically places participants into a default lifecycle investment strategy.

The default progressively reduces investment risk as the participant approaches age 66.

Participants can also choose among:

• low-risk;
• medium-risk; and
• high-risk strategies.

MyFutureFund investment information.

A PRSA can offer a wider or narrower range depending on the product. The Pensions Authority distinguishes between standard and non-standard PRSAs, with non-standard PRSAs generally allowing broader investment options.

The additional choice can be useful, but choice itself is not the same as a better investment outcome.

Fees, diversification, asset allocation, behaviour and time horizon all matter.

What does MyFutureFund cost?

MyFutureFund currently lists:

• an administration fee of 55 cent per week while actively contributing, capped at €28.60 a year; and
• an investment-management fee currently stated as 0.03833% of assets under management.

The investment fee continues while the money remains invested, including during periods when contributions have stopped.

These charges can change over time, so they should be checked rather than assumed permanent.

PRSA charges vary by provider and product.

The Pensions Authority states that a standard PRSA can charge no more than:

• 5% of each contribution; and
• 1% a year of the PRSA fund value.

Those are statutory maxima, not a statement that every standard PRSA charges the maximum. Non-standard PRSA charges are not capped in the same way.

A fair comparison therefore uses the actual charges on the pension you are considering.

What happens if you opt out of MyFutureFund?

MyFutureFund is automatic, but not permanently compulsory.

After initial enrolment, you must remain enrolled for the first six months.

The normal opt-out window is during months 7 and 8.

If you opt out in that window:

• your own eligible contributions are refunded;
• employer and State contributions already made generally remain invested in your MyFutureFund pot;
• future employer and State contributions stop while you are opted out;
• if you remain eligible, you will normally be automatically re-enrolled after two years.

Participants can also suspend contributions after the initial six-month period. Suspension is different from an opt-out and has its own timing rules.

MyFutureFund: managing your fund.

This means “I can opt out” should not be read as “nothing happened and the account disappears”.

What if your employer later puts you into a qualifying pension?

MyFutureFund is intended to fill pension-coverage gaps rather than automatically sit alongside every workplace scheme.

If an employment becomes covered by a qualifying payroll pension arrangement, that employment can become exempt from MyFutureFund.

The participant FAQ also explains that overlapping contributions may need to be reconciled.

This makes payroll treatment important. Simply having an old PRSA sitting somewhere is not necessarily the same as making qualifying pension contributions through the relevant employment.

If your employer changes pension arrangements, check how payroll will treat MyFutureFund rather than assuming the answer.

Can you transfer MyFutureFund into your PRSA?

Not currently.

MyFutureFund states that, in the initial years of the scheme, transfers into or out of MyFutureFund are not available.

A PRSA is generally more portable. The Pensions Authority says PRSA benefits can normally be transferred to another PRSA or occupational pension arrangement without a transfer charge.

That difference may matter to someone who values consolidating retirement accounts.

It may also change as MyFutureFund develops, so this is an area where current rules should always be rechecked.

Tax at retirement

MyFutureFund says its retirement tax treatment is intended to operate in a similar way to a PRSA.

Its current participant guide describes:

• investment growth within the account without annual personal tax on that growth;
• a tax-free retirement lump sum of up to 25% of the fund, subject to pension-tax rules; and
• the remaining drawdown being subject to Income Tax under the rules applying at the time.

Private pensions also have retirement-tax rules governing lump sums, ARFs, annuities and taxable drawdowns.

The important point is that “tax relief going in” and “tax treatment coming out” are separate questions.

MyFutureFund versus PRSA versus occupational pension: the practical table

Question	MyFutureFund	PRSA	Occupational pension
Automatically provided?	Yes, for eligible uncovered employment	No, although employer may have to provide access	Only if employer operates one and you are eligible
Employee contribution in 2026	Fixed 1.5%	Chosen subject to product/rules	Scheme rules
Employer contribution	Required 1.5% in 2026	Possible, not automatically required merely because a PRSA exists	Depends on scheme
State support	0.5% top-up in 2026	Income Tax relief may apply	Income Tax relief may apply to employee contributions
Can employee simply pay more?	No AVCs currently	Usually possible	Often possible through AVCs, subject to scheme
Investment choice	Default + low/medium/high strategies	Product-dependent	Scheme-dependent
Normal access	66 currently	Usually from 60	Scheme NRA, generally 60–70
Portability	Transfers currently unavailable	Designed to move between jobs	Transfer options depend on scheme
Charges	Scheme-wide MyFutureFund charges	Provider/product-specific	Scheme-specific

This table is necessarily broad. Individual pension contracts and occupational schemes can differ substantially.

Three questions that matter more than the product name

When comparing the pension you have with MyFutureFund, start here.

1. How much money actually reaches retirement savings each year?

Include:

• your contribution;
• employer contribution;
• State top-up or Income Tax relief;
• charges.

Do not compare employee percentages alone.

2. How much flexibility do you need?

Ask:

• Can you make AVCs?
• Can you increase contributions later?
• Can you transfer the account?
• What investments are available?
• When can benefits normally be taken?

3. What does your employer’s scheme include?

An occupational pension may include benefits that are not obvious from the pension contribution percentage.

Read the scheme documentation rather than assuming the pension balance is the whole package.

Use the calculators together

The three Compound tools answer different parts of this question.

The MyFutureFund Calculator estimates employee, employer and State contributions under the phased auto-enrolment rates.

The Pension Tax Relief Calculator shows how Revenue’s age and earnings limits affect relief on qualifying personal pension contributions.

The Pension Projection Calculator then lets you explore the longer-term effect of contributions and assumed investment returns.

None of them can determine which pension arrangement is suitable for you. But together they make the trade-offs much easier to see.

The useful conclusion is not “MyFutureFund or private pension?”

For someone with no pension coverage, MyFutureFund creates a straightforward route into retirement saving and brings employer and State contributions with it.

For someone already offered a strong occupational pension, or someone who wants to contribute substantially more through a PRSA or AVCs, the structure is different.

The comparison therefore needs six numbers:

1. what you contribute;
2. what your employer contributes;
3. what State support or tax relief applies;
4. what the fees are;
5. when you can access the money; and
6. how much flexibility the arrangement gives you.

Once those are visible, “MyFutureFund vs private pension” stops being a slogan and becomes a comparison you can actually calculate.

For more detail on the existing tax-relief system, read Pension tax relief in Ireland: what it’s worth, the limits, and how to claim.

What happens when you eventually take a lump sum?

Contribution rates are only the accumulation side of a pension. Retirement benefits have their own tax rules. For personal pensions, 25% of the fund can generally be taken as a retirement lump sum, subject to the lifetime tax-free limit across retirement lump sums. Occupational schemes can use salary-and-service rules instead. The Pension Lump Sum Calculator Ireland lets you model the €200,000 lifetime tax-free limit and the tax bands that apply above it.

If you are deciding where retirement saving fits beside a normal brokerage account, start with our guide to investing in Ireland. It explains why the tax wrapper, access rules and fees should be compared before choosing the underlying investment.

Where MyFutureFund fits in the wider pension system

MyFutureFund is only one part of retirement planning. For the full sequence—from pension types and tax relief through funds, transfers and retirement access—use Pensions in Ireland 101.