Pension myths vs facts: What people in the East-Midlands need to know

September is Pensions Awareness Month, so in this month’s MoneyHelper column, Gavin Morris, East-Midlands Regional Manager at the Money and Pensions Service (MaPS), busts myths around pensions.

1. "I don’t need to start saving into my pension until I’m older”

False – you should start saving into your pension as soon as you can.

A pension is an investment, and your money should grow over time. Research from the Institute and Faculty of Actuaries (IFoA) found that contributing to your pension at 35 rather than 25 could cost you up to £300,000 in your final retirement pot.

Don’t forget that, as with any investment, your pension pot can decrease and increase.

Read MoneyHelper’s guide on why you should save into a pension.

2. “There is no set figure for how much I should have in my pension"

True – the amount everyone will need or want in retirement is different.

However, you can roughly figure out how much you’ll need and how much you’re on track to get using MoneyHelper’s Pension Calculator.

3. "There is nowhere to get free help with my pension”

False – MoneyHelper offers free and impartial pension guidance.

MoneyHelper has numerous free tools and resources to learn more about your pension. MoneyHelper also offers free guidance from a pension expert over the phone or via webchat.

If you’re over 50 with a Defined Contribution pension, you can undertake a free one-hour Pension Wise appointment to explore the options open to you when taking money from your pension.

You can also use Pension Wise Digital to receive the same level of guidance digitally and in your own time.

Thanks to Pension Wise, people across the UK have been making more informed decisions about their retirement for a decade, as this year marks 10 years of the service.

In 2023/24, 92% of users reported satisfaction with our telephone service, and 9 in 10 said it helped them to better understand their pension options.

Book a Pension Wise appointment on MoneyHelper.

4. "There is no way for me to top-up my retirement income”

False – there are a few ways you can do this.

Firstly, see if you’re eligible for Pension Credit which can top up your income. You must be over State Pension age to benefit from Pension Credit, and doing so can also help with housing costs, your TV licence, and energy bills.

Check to see if you’re eligible at gov.uk.

Secondly, consider your National Insurance contributions.

You need at least 35 years’ worth of National Insurance payments to receive the full State Pension, so make sure you’re on track.

Check your State Pension Forecast at gov.uk and consider if paying to top up your National insurance is a good idea for you.

To see how increasing contributions to your workplace or private pension could boost your retirement income, use MoneyHelper’s Workplace Contribution Calculator.

5. “Pensions are tricky to understand”

True – even those who work in pensions would agree and 10.7million people are confused and too busy to think about their pension.

Pensions ARE confusing. We found that 10.7 million people are confused and too busy to think about their pension, and that’s why MoneyHelper exists.

Visit MoneyHelper.org.uk for free guidance about your pension.