Ireland should reform its pension rules to allow greater investment in private markets, a move that would benefit both consumers and the wider economy, according to Alan Merriman, co-founder and CEO of investment firm Elkstone.
Speaking on RTÉ’s Morning Ireland, Merriman said the upcoming introduction of the auto-enrolment pension scheme in 2026 presents a major opportunity to reshape how pensions support long-term national priorities such as housing and infrastructure.
“There is an opportunity for us to be much more progressive,” he said. “One of the challenges we have in Ireland is our domestic economy—investing in our domestic economy and infrastructure. We’re all conscious of the housing market, and pensions is a source of funding.”
Merriman argued that pension funds should be allowed to invest more in private assets, such as early-stage companies or long-term infrastructure projects, following examples in the US and UK. In the US, President Donald Trump is expected to sign an executive order permitting private asset inclusion in 401(k) retirement plans. Similarly, the UK plans to require pension funds to allocate 10% of assets to private investments by 2030, with at least 5% directed towards British firms.
While private market investments can be riskier and less liquid than publicly traded shares or bonds, Merriman warned that excluding them may actually expose pension savers to greater risk. “Globally, there’s a much greater concentration in public equities, so it’s actually more risky not to be diversifying,” he said.
He added that pension funds are particularly well suited to long-term investments, which are typical in private markets. “Pension money is long-term investing… private markets is long-term investing. You’re getting a higher return because it’s an illiquid market—it’s a premium for that investing,” he explained.
Merriman also called for a requirement that a portion of pension investments be directed specifically towards the Irish economy. “We don’t have the deep pension industry that other countries have. We don’t have the big foundations or teacher pensions like in Canada,” he said. “We need to go further—we need to self-help. One of the ways we can do that is by encouraging our own retail investors and pension funds to invest in Ireland Inc.”
With the government providing financial support for the rollout of auto-enrolment, Merriman said it would be sensible for it to also mandate that a set percentage of pension assets be invested domestically. “It makes a tonne of sense,” he said.
