Auto Enrolment – Brokers Ireland Welcomes Initiative But Calls For Speedier Implementation
Mon Aug 27 2018
Welcoming the recent Auto Enrolment announcement by Minister for Employment Affairs and Social Protection, Regina Doherty, Brokers Ireland said improving and extending pension coverage is critically important for consumers.
The organisation which represents almost 1,250 broker firms, said the design features of the scheme will ultimately dictate the value of return to consumers over the longer-term.
Diarmuid Kelly Chief Executive of Brokers Ireland said his organisation would be formally responding following detailed consideration.
“However, in relation to the initial proposal as published today, while the total contribution between employee/employer and the State in the auto enrolment system of an eventual 14pc is probably about right we would have a concern around the lead-in time from 2022.
“Effectively we’re talking about 10 years from now before auto enrolment would be fully in place,” he said.
“We would encourage the Minister and the Government, given that it has taken so long to get to this stage, to try and reduce that timescale. A decade is a long-time in anyone’s life and such a gap in terms of proper pension planning and investment can have a very serious impact on income in retirement.”
He said his organisation would recommend that anyone who doesn’t currently have a pension in place should seek advice from their local impartial Financial Broker.
And he said a critical element for consumers will be how people’s auto enrolment savings will be invested. “To this end we welcome the proposal for a private sector competitive solution. This will generate best value for consumers over the long-term,” he said.
Over the coming weeks, Brokers Ireland will review the Auto Enrolment Consultation Paper and will be seeking input and feedback from members in preparing the Association’s response and recommendations to the proposal.
Please link here to download the Department of Employment Affairs
and Social Protection Consultation Paper on Auto Enrolment.
Note: Brokers Ireland represents almost 1,250 impartial Broker firms throughout Ireland.