The majority (79 per cent) of Irish organisations are either completely unprepared or only partly prepared for the introduction of auto-enrolment, research from Zellis has revealed.

The survey found that just over one fifth (21 per cent) of organisations are fully prepared for the My Future Fund auto-enrolment retirement savings scheme, which is currently set to launch on 30 September 2025.

However, two fifths (40 per cent) of respondents admitted that they have very little to no understanding of the timeline and planning needed to support auto-enrolment, while less than a fifth (17 per cent) said they fully comprehend the timeline and planning requirements.

The survey also revealed that while a third (33 per cent) of organisations have updated their employment contracts in line with the impending changes, fewer (28 per cent) have put a communication plan in place to inform employees of the scheme, fund options, and tax implications.

Zellis highlighted the research as evidence of a "surprising" lack of preparedness, just eight months before the auto-enrolment legislation takes effect, revealing an "equally concerning" lack of preparedness on costs.

Indeed, the survey found that more than three-quarters (77 per cent) of organisations have either not calculated, or only partly calculated, the cost of auto-enrolment.

This is despite the fact that 75 per cent of respondents expect the majority of their workforce to take part in the pension scheme.

When it comes to forecasting contribution costs, most employers will use their payroll system (42 per cent), although 35 per cent plan to use their finance system, while 21 per cent expect to use multiple systems, including traditional spreadsheets.

However, less than half (45 per cent) of respondents said there has been any form of awareness campaign for payroll and HR teams.

In addition to this, 58 per cent indicated their company is yet to check whether its payroll system can make the necessary calculations, deductions, and contributions to the National Automatic Enrolment Retirement Savings Authority (NAERSA).

Survey respondents were aware of some costs, however, with the majority confirming that their organisation expects to increase its technology investment to facilitate the introduction of auto-enrolment.

In particular, nearly half (48 per cent) plan to invest in payroll system modernisation, and more than a quarter (27 per cent) selected ‘payroll/HCM/reward integration’ as an area that will require further investment.

Commenting on the research, Zellis Ireland director of product services, Seán Murray, said: “Auto-enrolment represents the largest change to the Irish pensions system in more than sixty years and so this research paints a concerning picture.

"There is a significant lack of preparedness and awareness across the board, suggesting many organisations still have no knowledge of the scheme, don’t understand its proposed operation, and don’t understand their legal obligations as an employer – nor the ramifications of non-compliance.

“Once live, payroll systems will calculate the cost to the employer of company contributions on an ongoing basis but without an initial baseline analysis, employers will not understand their existing exposure, reducing the accuracy of any projected costs.

"At scale, this poses considerable risk to the financial stability of Irish companies and adds to the case for urgent action.”

“By leveraging the right systems, services, and tools to identify their existing exposure levels and associated costs, however, companies can take steps to project future contribution costs based on scheme anniversary rate increases and anticipated recruitment needs."

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