Pension Myths we still hear in 2026

Truth: It’s valuable, but usually not enough on its own

The full new State Pension in 2025 to 2026 is about £230.25 per week, roughly £11,973 a year. Whilst this is a helpful foundation, it’s often too little to rely on.

Essentially, £11,973 a year is roughly £998 per month, £230 per week, or about £33 per day. Whilst it certainly helps, it’s likely it won’t cover the kind of retirement people want.

Even a fairly modest retirement budget of £1,800 to £2,500 per month means you could be looking at a shortfall of roughly £800 to £1,500 per month before you’ve even considered holidays, home improvements, supporting family, or inflation.

How we help

We build a retirement income model that includes the State Pension and other income., so you can see the full picture and can plan proactively - rather than assume the State will be enough.

Truth: Auto enrolment doesn’t mean you’re on track

Auto enrolment has brought millions into saving, yet many don’t fully understand it. Basics like the type of pension they have, whether charges are eating returns, or how their investments are performing are rarely understood. 

Indeed, half of adults aged 18 - 34 don’t know how their pension is performing, and nearly the same applies for those over 55. Even when contributions are being made, being enrolled is not the same as being on track.

For example: 

If someone earns £35,000 a year and total contributions are 8%, that’s about £2,800 per year going into pensions. Whilst it isn’t bad, it it may not be enough to fund a comfortable retirement unless it is maintained consistently for decades, invested appropriately, and reviewed as life changes.

This is where the danger sits. Most people don’t review their pension when life circumstances change. For example, when their…

• Salary rises
• Their mortgage changes
• They have children
• They change jobs
• They move from growth to needing income

They just assume it will look after itself.

How we help 

We analyse your existing pensions thoroughly, not just confirm they exist, and show you in clear terms whether they’re aligned with your goals. We can advise and adjust accordingly if you keep us up to date with life changes, so you know you’re optimizing your retirement the best you can. 

Truth: Meaningful improvements are always possible

Even if you’re later in your career or feel behind, there’s almost always room to improve. Some steps that can add up:

• Matching investment strategy to your risk capacity
• Consolidating multiple pots to reduce charges
• Reviewing contribution levels
• Planning drawdown efficiently

For example, increasing contributions by just £100 per month is £1,200 per year.

Over 15 years, that’s £18,000 of extra contributions before growth is even considered.

Or take consolidation.

If you have three or four pension pots scattered across providers, it’s common to find duplicated charges, outdated investment strategies, or simply a lack of oversight. Recent analysis shows higher earners can face large pension shortfalls compared with the income they’ll actually need in retirement.

How we help

We prioritise changes that genuinely move the dial, not cosmetic tweaks. Whether early or late, we map the improvements with real measurable impact.

Truth: Early engagement compounds value

It’s never too early to start thinking about your pension. In your 20s and 30s, understanding your pension and making sure contributions and risk profiles are set appropriately can dramatically improve long term outcomes.

A simple example shows why.

If you contribute £150 per month into a pension, that’s £1,800 per year.

Over 10 years, you might think that’s only £18,000 of contributions. But with growth over time, those early contributions can become one of the most valuable parts of the whole plan because they have the longest time to compound.

The alternative? 

If you delay pension contributions by 10 years, you don’t just lose 10 years of savings. You lose 10 years of growth on every pound you could have invested. That is why people often end up shocked later in life when they finally run the numbers.

With average UK pension pots still modest and many people holding multiple pots across jobs, what you do now matters. 

How we help

We project your pension outcomes under different scenarios so you can see when and how early decisions can improve your final retirement income.

Truth: Ignoring your pension quietly costs you money

Almost half of UK adults don’t know how much they’ve saved, and many don’t check regularly. The problem is, the longer you wait, the more opportunities you miss. Letting charges compound, leaving pots unmanaged, or ignoring missing National Insurance years on your State Pension record can cost tens of thousands over decades.

This is where hidden charges can do the most damage, and most people don’t realise it can be made up of multiple layers, such as:

• Platform charges
• Fund charges
• Product charges on older pensions
• Transaction and trading costs
• Extra costs for specialist funds or guarantees
• Individually these can look small.

But even a difference of 0.50% per year on a £100,000 pension is £500 per year.

Over 20 years, that’s £10,000 in cost before considering the lost growth on money that left your pot each year.

This is why transparency matters.

How we help

At Pension Pulse, we are upfront about fees and we clearly show what you are paying, what you are getting for it, and how we believe it improves outcomes and confidence over the long term. You will always know what you are paying and why, and you will never be left guessing.

Truth: Property and pensions are fundamentally different assets

Property can be part of a retirement plan, but it isn’t liquid like pension income. It isn’t tax efficient for retirement drawdown, and doesn’t replace the structured income that pensions are designed to provide.

The key issue is not whether property is valuable, but whether it can provide reliable income.

A home worth £300,000 might look like a retirement solution on paper.

But unless you sell it, downsize, or release equity, it is not paying the bills.

And even if you do sell, you still need a plan for what happens next.

• Where do you live
• How do you replace the security of owning your home
• How do you generate income from the proceeds
• How do you manage tax and investment risk

How we help

We integrate housing equity into your broader retirement plan where appropriate, but always with clarity about timing, tax, and income needs.