Hey Lykkers! Let’s have a real talk about pensions. When the topic comes up, do you feel a flicker of confusion, or maybe even a sense of dread? You're not alone. Pensions are often wrapped in layers of jargon, hearsay, and outdated advice. It’s easy to cling to comforting myths that can quietly sabotage your future.

Today, we’re cutting through the noise. Let’s debunk five of the most common pension myths, so you can plan with clarity, not fear.

This is the granddaddy of all pension myths. The power of a pension isn’t about the amount you save first; it’s about time. Starting even a small contribution in your 20s or 30s leverages decades of compound growth, where your earnings generate their own earnings. Waiting a decade can mean having to save double or triple later to catch up.

Expert Insight: Financial planner Sarah Chen puts it bluntly: “The most expensive retirement planning mistake is procrastination. A 25-year-old saving $200 a month could outpace a 35-year-old saving $400 a month by retirement age, thanks to compounding.” (Source: Modern Wealth Building podcast).

Myth 2: "The State Pension Will Be Enough for Me."

Relying solely on the state pension is like planning to live on instant noodles—it might keep you alive, but it won’t be much of a life. In most countries, state pensions are designed as a safety net, not a replacement for your working income. They typically cover only basic living costs.

Expert Insight: Economist Dr. Ben Miller warns, “State pension systems globally are under demographic strain. While they won’t disappear, their relative value is likely to shrink. Personal savings are no longer optional; they’re essential for a dignified retirement.” (Source: Global Pension Sustainability Report, 2023).

Myth 3: "My Savings Are Too Small to Matter."

Never underestimate the power of starting. A small, regular contribution builds discipline and creates a financial habit. Many pension plans also offer employer matching—this is free money. Not contributing enough to get the full match is like turning down a pay rise.

Expert Insight: “A sapling doesn’t look like a forest—but it still grows,” says wealth strategist Lena Rodriguez. “The psychology of starting is more important than the number. Small, automatic deposits build the behavioral foundation for real wealth. Once the system is running, growth becomes almost effortless.” (Source: The Steady Investor blog).

Myth 4: "Pensions Are Too Risky and Complicated."

It’s true that pensions involve investment, which carries risk. However, a well-managed pension fund is designed for the long haul. Professional managers diversify your investments across assets and gradually shift to lower-risk options as you near retirement. The biggest risk isn’t market fluctuation—it’s not investing at all and losing to inflation.

Expert Insight: “Pension funds are the original ‘set it and forget it’ vehicle,” says David Park, CFA. “Yes, there’s complexity behind the scenes, but for the individual, the simplicity of automatic, tax-advantaged saving outweighs it. Complexity is managed for you.” (Source: Institutional Investor Council white paper).

Myth 5: "I Can Just Rely on Property Instead."

While property can be a valuable part of a broader wealth-building strategy, it is not a substitute for a pension. Real estate is an illiquid asset—you can't quickly sell a piece of your kitchen to cover a medical bill or weekly groceries. It carries ongoing burdens like maintenance, property taxes, and insurance, and its value is subject to local market volatility.

Expert Insight: “Putting all your eggs in the property basket is a high-risk, high-maintenance strategy,” cautions property and pension analyst Maya Thorne. “A pension provides guaranteed income; property provides potential equity. You need both for balance, not one instead of the other.” (Source: Wealth & Balance quarterly journal).

So, Lykkers, which myth have you believed? The good news is, now you know better. Your pension is one of the most powerful tools you have for building future freedom. Start where you are, use what you have, and remember: the best time to plant a tree was 20 years ago. The second-best time is today. Let’s get planting.