Pensions get some bad press, but not everything you read is accurate. Below we look at some of the common pension misconceptions and the reality.

I’ve got the rest of my life to save for my retirement, what I earn now is to spend on the here and now. 
One of the main advantages of a company sponsored plan is that the Company and Government also pay in on your behalf, so by saving in a retirement plan you will receive money that you otherwise would not get. Remember that you can live for decades once retired, with average life expectancy now approximately age 86 for men, and 89 for women and you will need money to support that. It is also easier to pay a little each month rather than having to contribute more in the future. The sooner you begin to save money, the longer it has to grow. 

My money is tied up in my house so I’ll just use this once I retire.
Relying on this type of investment is a risk as house prices may fall at any time, and sometimes they are difficult to sell or may be subject to tax charges. Consider whether you will have enough money to live on for the rest of your life – including the cost to you of renting a property – should you decide to sell your house.

When I retire, my children will be able to provide for me so that I can live comfortably.
The next generation may well face their own financial challenges and therefore it’s best to ensure that you are financially independent in your retirement.

Some people say that pension schemes are scams as you don’t always get back as much as you paid in.
Although pensions are investments and have their associated risks, they are carefully monitored by the Plan Trustees and advisers to make sure that you have a range of investment options to suit your circumstances. You have the choice of how much risk you want to take with your investments, so the control is in your hands. Even if your investments did fall in value slightly, you are still likely to be better off because of the regular Company contributions and on-going tax relief. Remember that, depending on how you draw your benefits, the value of your savings at, or during, your retirement is what matters. Many investments are likely to have some ups and downs between now and then. Your retirement savings are held by the Trustees. Their legal duty is to you. The Company can't access the money as it is held separately on behalf of Plan members. 

The Government will pay me a State Pension when I retire, so I don’t need to worry.
The Government may pay you a State Pension once you reach State Pension age, but it is rarely enough to cover most people’s typical living expenses. You can find out more about the State Pension here.

I don’t know how long I’ll be in this job and if I joined every pension at every job, then I’d just be left with lots of small individual accounts.
Don’t forget that all those small accounts soon add up! You can also choose to transfer your retirement savings as you move into a new job – helping you to keep track of them.

I can only just afford to pay my mortgage, let alone paying into a pension as well.
Even contributing a small amount now is likely to be better than putting it off completely. Plus, for every month you aren’t a member you are missing out on valuable contributions from the Company and tax relief from the Government. A couple of pounds each day – equivalent to a cup of coffee – could make a huge difference to you in later life.

I’ll just keep playing the lottery...one day my numbers will come up.
Although we might all dream of spending our retirement yachting around the world thanks to a big win, the chances of this actually happening are about 1 in 14,000,000 so it’s a good idea to have a plan B.