Navigating the Pensions Landscape in 2025

The pensions sector continues to evolve, with significant regulatory, social, and demographic shifts shaping its trajectory. We review four key developments from 2024 and highlight the major trends likely to influence pension schemes in 2025.

Progress toward auto-enrolment

The passing of the Auto-Enrolment Pension Act 2024 marked a major step toward Ireland’s long-anticipated retirement savings reform. Designed to ensure broader pension coverage, the Act introduces mandatory auto-enrolment for eligible employees, with phased contributions from both employers, employees and the State.

While the framework is now clearer, businesses must prepare for significant operational and compliance requirements as the scheme’s implementation progresses. Proactive planning and expert guidance will be essential for a seamless transition.

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Digital operational resilience and pension schemes

The Digital Operational Resilience Act (DORA) brought a renewed focus on safeguarding the financial services sector, including pension schemes, against operational disruptions. Enhanced cybersecurity measures, incident response protocols, and oversight obligations have become critical for trustees and administrators alike.

Given the increasing reliance on digital systems, trustees must ensure robust compliance strategies to protect sensitive pension data and maintain operational continuity.

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Retirement trends: reconsidering the retirement age

Conversations about retirement age continued to dominate discussions in 2024. The sustainability of the State Pension and shifts in workforce demographics have led many employers to rethink traditional retirement policies, accommodating flexible retirement ages to align with employee preferences and market demands.

Employers and trustees must carefully balance flexibility with compliance, ensuring scheme rules are adaptable while meeting regulatory obligations.

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Looking ahead: pensions trends for 2025

The Irish pensions landscape in 2025 will be shaped by several key themes:

• Auto-enrolment rollout: The much-anticipated implementation of auto-enrolment on 30 September 2025 will create new obligations for employers. Preparation for compliance and integration will be crucial to navigate this shift successfully.
• State pension sustainability: Demographic pressures are likely to intensify discussions on funding models and retirement age policies, requiring stakeholders to stay informed and adaptive.
• Flexible retirement needs: Accommodating a variety of retirement timing preferences while ensuring regulatory compliance will remain a priority for employers and trustees.
• Defined Benefit Scheme Challenges: Funding pressures and solvency requirements for DB Schemes will demand a proactive approach to risk management and member security.
• Governance and investment strategies: Evolving market conditions and the anticipated adjustment of the Standard Fund Threshold will necessitate refinements in governance frameworks and investment approaches, particularly with a growing emphasis on ESG integration.
• Digital resilience: Cybersecurity and data protection will take centre stage, requiring ongoing investments in technology and compliance with operational resilience standards.
• AI in pension administration: The adoption of AI offers opportunities for streamlined processes but must be paired with robust ethical and regulatory safeguards.

Our award-winning Pensions team is ready to help you navigate these challenges and opportunities in the coming year. If you have questions about your pension arrangements, don’t hesitate to contact us.