Saving for the future is hard enough without making it harder on ourselves, but that’s exactly what many of us do, often without even realising it. When it comes to pensions, many people put things off or avoid getting started because of common myths that sound true but really aren’t.
These misconceptions can lead to missed chances and habits that chip away at your financial future. And what feels like no big deal now can have a serious impact on your lifestyle down the line. So, let’s bust some of those myths before they mess with your future.
“I’m too young to worry about pensions.”
This is one of the most common myths out there and one of the most damaging. The truth is, the earlier you start, the more powerful your pension can become over time. That’s all thanks to something called compound interest, which basically means you earn interest not just on what you put in, but also on the interest that’s already built up. It’s like a snowball rolling down a hill; the longer it rolls, the bigger it gets.
Even if you’re only putting away a small amount each month in your 20s or 30s, you’re giving your money time to grow. And trust us, your future self will thank you for getting ahead while you can. Starting young doesn’t mean locking yourself into big payments—it just means giving your money more time to do the hard work for you
Read our guides: Retirement Planning in Your 20s and Retirement Planning in Your 30s.
“I’ll lose my pension if I change jobs.”
Not true and definitely not a reason to stay in a job that’s no longer right for you. Most people think their pension disappears the moment they move on, but that’s not how it works. In Ireland, if you’ve been with your employer for two years or more, you’ve built up pension benefits that are yours to keep.
You can choose to leave the money where it is, transfer it to a Personal Retirement Bond (PRB), or move it into your new employer’s scheme if they allow it. Even if you haven’t hit that two-year mark, you may still have options like a refund of your contributions or deferred membership.
Your pension doesn’t just vanish when you hand in your notice. It’s your money, and there are flexible ways to bring it with you or manage it as you move forward in your career.
And if you’ve had a few jobs over the years and aren’t sure where all your old pensions are, our pension tracing service can help you locate old or forgotten pension schemes from previous jobs, so you don’t miss out on what you’ve already earned.
“The state pension will give me all I need when I retire.”
It’s a nice idea, but unfortunately, it’s not the whole picture. The State Pension in Ireland is meant to act as a basic safety net, not a complete replacement for your income. As of 2025, the contributory State Pension is approximately €289 per week, equivalent to around €15,000 per year. While it might cover the essentials, it’s unlikely to stretch far enough for things like holidays, helping the grandkids, or simply enjoying the kind of lifestyle you’ve worked hard for.
And here’s the thing: you can’t even access the State Pension until age 66 (and that age may rise in the future). But with a private pension, you usually have the option to retire from age 60, or even as early as 50 in some cases, depending on the type of pension you have. That gives you far more flexibility and freedom to choose when and how you want to slow down or step away from work.
Relying solely on the State Pension could delay your retirement plans, while having your own pension gives you more control, more choices, and a better shot at enjoying retirement on your terms.
Read our Essential Guide to Pension and Retirement Planning.
Publisher: Source link
