The Short-Term Distributional Impact of Pension Auto-enrolment

Claire Keane, Seamus O'Malley and Dora Tuda
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Claire Keane: Economic and Social Research Institute and Trinity College Dublin
Seamus O'Malley: Economic and Social Research Institute, Dublin

The Economic and Social Review, 2023, vol. 54, issue 3, 173-192

Abstract: The Irish government plans to introduce pension auto-enrolment with an initial employee contribution rate of 1.5 per cent eventually rising to 6 per cent. We examine the immediate distributional, poverty and inequality impacts of an auto-enrolment charge. We find that the bottom two income quintiles will see the smallest fall in disposable income, driven by the fact that only 2 per cent of family units in the lowest quintile and 18 per cent in the second quintile will actually be affected by auto-enrolment. There will be little impact on the at-risk-of-poverty rate. This is explained by the fact that the largest negative impacts on disposable income will be in higher income quintiles.

Keywords: pensions; incomes; Ireland (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eso:journl:v:54:y:2023:i:3:p:173-192

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