Pension auto enrolement is on the way

D

Delboy

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At an IBEC dinner last night, Varadkar pledged an overhaul of pensions in Ireland with auto-enrolment for all workers a key feature
http://www.newstalk.com/No-discrimination-in-new-autoenrolment-pension-scheme-Doherty-says

"This issue has been long-fingered for too long and now that the economy is recovering strongly we must act decisively and we will publish a five year road-map for pension reform before the end of the year," he told an IBEC conference on Thursday.

"This will include introduction of an auto-enrolment pension scheme for private sector workers - two-thirds of whom currently have no occupational pension to supplement their state pension.

"I anticipate the first payments being made into those new individually held funds by 2021."
Click to expand...
Quiet a departure for FG who only a few years were raiding private pension pots!
Lots of detail to come obviously but will be interesting to see if opt-out options apply, how much the fees the pension industry will get their hands on etc.

But reform is overdue and badly needed. Will this be Varadkar's 'Donogh O'Malley' moment?
 
Key issue will be making sure very low fees.

Charging 5% cont fee and 1% AMC is crazy.

We need to move towards 0% cont fee and 0.25% AMC.

We need automation / ICT / scale, and fees like Vanguard, etc.

Huge funds with up to a million contributors should help.
 
It makes a big deal of passive, low fee funds being chosen
And the auto option (if people don't make a choice) is quite a good choice - I even tried investing in it but it's apparently not available internationally
Would post links, but I'm a less-than-10 posts newbie, so still possibly a spam bot ;)

Edit: Check out the AP7 Equity Fund on morningstar (Swedish one) ISIN SE0003299999
 
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