Steps and pensions: Which do you track more closely?

Consumers are twice as likely to keep track of their step count than their investments and pensions. Read tips for levelling up your financial health here.
Do you think about your financial health as much as your physical wellbeing?
A new study from Nutmeg, published by the Independent, discovered that:
- 37% of people would advise their younger selves to think about their wealth as much as their health
- The number of people who are concerned about their finances almost equals those who are concerned about their health – 42% and 48% respectively
- Despite this, nearly twice as many people invest in dietary enhancements like protein shakes as those who use apps to help them with budgeting
- The same goes for steps and pensions; 37% of people track their steps whereas only 16% do the same for their investments and pensions.
While it might seem odd to compare health and money, both of these factors have a significant impact on our quality of life.
Indeed, if you’re in your 40s and 50s, it’s likely that you are paying more attention to looking after your physical health. Perhaps you’re doing more exercise, eating well, and trying to achieve a work-life balance that benefits your mental health.
If so, here are some tips for levelling up your financial health in a similar way as you approach retirement.
Track down lost or forgotten pension pots
Much like you may be dusting off old exercise equipment or pulling healthy recipe books off the shelf as you get older, unearthing any lost or forgotten pensions could give your wealth a boost.
As you might have read about in our previous article, there is approximately £20 billion residing in lost or forgotten UK pension pots.
You can use the government’s pension tracing service, contact your old employer, or get in touch with the provider(s) of your old pensions in order to uncover these pots. Once you’ve done so, it may be worth speaking to a financial planner about ensuring your pension wealth is positioned to receive maximum returns, where possible.
Work out the cost of your lifestyle and measure this against your proposed retirement income
If you’re worried about remaining physically healthy throughout retirement, you aren’t alone. You could even have called your doctor for an overall health check, helping you to sleep better in the knowledge that you’re entering retirement fit and healthy.
And, similarly, you could have concerns about supporting yourself financially as a retiree. FTAdviser reports that 71% of financial planners say outliving their savings is the number one financial concern for prospective retirees.
So, it may be time to take a closer look at the annual cost of your lifestyle.
It’s likely that you wish to continue your normal routine and enjoy the lifestyle you have become accustomed to when you retire. In order to do so while remaining financially stable, it may be wise to conduct a thorough review of your spending and measure this against your proposed retirement income.
The first step here is to look at the past three-to-five years’ spending.
Break this down into:
- Essentials, including housing costs, transport, household basics, savings, investments, insurance, tax, and pension contributions
- Leisure, such as holidays and meals out
- One-offs, like gifts or home renovation projects that won’t be repeated annually.
Once you understand the average amount it costs to achieve your standard of living each year, taking one-offs and unexpected bills into account, the next step is to review your prospective retirement fund.
Your financial planner can help here. We’ll assist you in collating the value of your:
- Cash savings
- Non-pension investments, including those held in an Individual Savings Account (ISA)
- State Pension entitlement
- Final salary or defined benefit (DB) pension payments you are set to receive
- Private pension(s), including any self-invested personal pension (SIPP) and workplace pension pots in your name
- Properties, including any you plan to sell or receive a passive income from.
Using bespoke cashflow modelling software, we’ll be able to measure your total retirement fund against how much you usually spend every year. This model may also take investment returns and inflation into account, for more accurate results.
By doing so, you might gain a clearer picture of whether your lifestyle expectations can be sustained in retirement – and be able to form a robust plan of action if not.
Talk to a planner about your financial health before you retire
Just as you might consult a medical expert about achieving optimum fitness and health in retirement, working with a financial planner could do the same for your money.
Even if you’re more than 10 years away from your planned retirement date, it’s never too early to begin planning for this important milestone. Our independent financial planners will form a long-term relationship with you and your family, if you wish, guiding you through every step of your retirement journey.
Professional advice might be especially useful in an era of rising costs and changing fiscal policy. We understand that you might be nervous about your financial prospects in retirement, particularly ahead of the Autumn Budget and amid an ongoing cost of living crisis.
If so, there’s no need to panic. We can help.
Email us at hale@kelland.co.uk, or call 0161 929 8838.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning or cashflow planning.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
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.
Workplace pensions are regulated by The Pension Regulator.
Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.