Retirement is the start of a new chapter in your life. It offers the time and freedom to enjoy the experiences you’ve put on hold to manage a busy career or family commitments.

But navigating retirement can feel complex, especially when you’re inundated with conflicting advice.

While some of this conventional retirement wisdom can be helpful, separating useful facts from enduring myths is essential. Certain assumptions can actually do more harm than good, especially if they affect how you save or spend your income.

Continue reading to discover five of these retirement myths, and why they don’t hold water.

1. “I’ve left it too late to save into my pension”

While it’s usually best to start saving into your pension as early as possible – ideally from your 20s – it’s never too late to start.

Your pension is incredibly tax-efficient. In 2025/26, you can benefit from tax relief on contributions up to the value of the Annual Allowance of £60,000, or 100% of your earnings, whichever is lower.

This means that a £100 contribution would effectively “cost”:

• £80 for basic-rate taxpayers
• £60 for higher-rate taxpayers
• £55 for additional-rate taxpayers.

You’re more likely to be at peak earning capacity later in life so you may find that you can afford to increase your contributions, helping you make up for the delayed start.

2. “I can withdraw 4% a year without worrying about running out of money in retirement”

The “4% rule” suggests that you can safely withdraw 4% of your pension each year, adjusted for inflation, without exhausting your fund.

The idea – which one of our previous articles covers in far more detail – is based on historical US data and market conditions that don’t reflect the financial landscape in the UK.

Instead of blindly applying the rule to your retirement withdrawals, you may want to think carefully about your own spending needs.

While following a rule of thumb might seem simpler, everyone’s needs and goals are different, and there’s no “one size fits all” approach.

3. “There’s little point filling gaps in my National Insurance record”

It’s easy to overlook the value of the State Pension, especially if you’ve accumulated significant savings elsewhere.

Yet, the State Pension offers a reliable and guaranteed income for life that could form the bedrock of your retirement savings.

In 2025/26, the new full State Pension is worth £230.25 a week, equal to £11,973 a year.

To receive any new State Pension at all, you must have accrued at least 10 qualifying years through paying National Insurance contributions (NICs) or receiving equivalent credits. You need 35 qualifying years for the full new State Pension.

If, after obtaining a State Pension forecast from the government website, you find you have gaps in your record, you can typically purchase NICs from the six most recent tax years.

According to Standard Life, a Class 3 voluntary NIC costs £824.20 for a full year (though this may differ if you’re self-employed or buying NICs for the 2023/24 tax year onwards).

This single year could boost your State Pension entitlement by £275.08 a year. If you start receiving your State Pension at 66 and live for another 20 years, this one £824.20 investment could add roughly £5,500 to your total retirement income.

Just remember that purchasing additional credits might not be for everyone, so it’s always worth speaking to us first.

4. “My income needs will remain static throughout retirement”

It’s tempting to think that you’ll need a certain level of income every year until the end of your life. In reality, spending tends to form a “retirement smile”.

In the early years, you’re likely to be more active. Travel, hobbies, and long-coveted home renovations can all increase your outgoings.

Midway through retirement, spending might fall as you settle into a routine.

But later in life, costs may rise again, particularly if you require care. This can be expensive, with carehome.co.uk revealing that, as of 21 March 2025, the average yearly cost of residential care is £65,832, or £79,508 for nursing home care.

Without careful planning, you may draw too much from your pension and lack the funds to cover this essential care.

5. “I don’t need financial advice before drawing from my pension”

Perhaps one of the most damaging retirement myths is that you don’t need financial advice before drawing from your pension.

A survey from Legal & General, published by FTAdviser, reveals that 58% of respondents accessed their pension without seeking any formal advice. Around 1 in 7 later regretted doing so due to fears of overspending or running out of money.

Taking too much too soon can mean exhausting your fund prematurely. Being too cautious could mean your loved ones face a larger-than-expected Inheritance Tax bill when you pass away.

Be sure to contact us now to find out how our Chartered financial planners can help.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.